Although Georgia currently does not have large-scale proven oil and gas reserves or production (current production – approximately 1,100 BOPD), it is worth noting that Georgia is within a hydrocarbon basin. The country is located geologically in the so-called upper Kura Basin, which is the east part of the same geological basin as neighboring Azerbaijan and contains the same reservoir and source rocks as the North Caucasus Basins. Up to 17 oil and 3 natural gas commercial fields have been discovered in Georgia so far. The country’s 15 oil fields have confirmed reserves of about 8.3 million tons but larger oil reserves are only assumed to exist. In order to successfully commercialize the above resources, prudent industry management and extensive investment activity is needed.
However, very little attention is paid on how well and prudently the upstream industry or mining sector is administered. The use of standards and globally accepted reporting principles to improve transparency in this area are simply overlooked. One of the key challenges when it comes to the reporting is how to make reporting relevant to the context of a particular industry operation. Complex value chains companies usually have to use International Financial Reporting Standards as a framework on a general basis, however there is no specific industry guidance or ready-made solutions for any particular operation segment of the industry.
The Publish What You Pay members in Georgia seeks to address this issue by promoting civil society involvement in the EITI implementation process. Efforts are focused on: