Identifier
Created
Classification
Origin
07TBILISI2772
2007-11-07 14:17:00
CONFIDENTIAL
Embassy Tbilisi
Cable title:
RESOURCE NATIONALISM IN GEORGIA
VZCZCXRO0400 RR RUEHDBU RUEHFL RUEHKW RUEHLA RUEHROV RUEHSR DE RUEHSI #2772 3111417 ZNY CCCCC ZZH R 071417Z NOV 07 FM AMEMBASSY TBILISI TO RUEHC/SECSTATE WASHDC 8126 INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
C O N F I D E N T I A L TBILISI 002772
SIPDIS
SIPDIS
STATE FOR EUR/CARC AND EEB/ESC/IEC/EPC:BGGRIFFIN
E.O. 12958: DECL: 11/05/2017
TAGS: EPET ENRG PREL PGOV GG
SUBJECT: RESOURCE NATIONALISM IN GEORGIA
REF: STATE 150999
Classified By: Ambassador John F. Tefft, reason 1.4(b) and (d).
(C) Georgia has very small proven reserves of oil and gas.
It has negotiated PSA's with two American companies, Canargo
and Frontera, to develop particular geographical areas.
Development rights to other blocks of the country have
recently been auctioned, mainly to foreign investors, who are
beginning to re-analyze Soviet era studies of their potential
and do studies of their own. "Resource nationalism", as it
is defined in refel, does not feature significantly in
Georgia's political and economic discourse, nor have any
actions been taken to Embassy's knowledge that reflect such
an attitude. Canargo has sometimes commented to Emboffs that
its PSA does not provide for adequate incentives for further
exploration. However, the new Minister of Energy of Georgia,
Alexander Khetaguri, recently told Canargo he is willing to
change the PSA to make the potential rewards for development
greater. No mention has been made of trying to pull back
advantages granted under the PSA's. GOG policy has been to
withdraw the government from involvement in business and from
ownership of all but the most strategic of national assets.
"Resource nationalism" would run counter to the overall
direction of policy of the government in this regard.
TEFFT
SIPDIS
SIPDIS
STATE FOR EUR/CARC AND EEB/ESC/IEC/EPC:BGGRIFFIN
E.O. 12958: DECL: 11/05/2017
TAGS: EPET ENRG PREL PGOV GG
SUBJECT: RESOURCE NATIONALISM IN GEORGIA
REF: STATE 150999
Classified By: Ambassador John F. Tefft, reason 1.4(b) and (d).
(C) Georgia has very small proven reserves of oil and gas.
It has negotiated PSA's with two American companies, Canargo
and Frontera, to develop particular geographical areas.
Development rights to other blocks of the country have
recently been auctioned, mainly to foreign investors, who are
beginning to re-analyze Soviet era studies of their potential
and do studies of their own. "Resource nationalism", as it
is defined in refel, does not feature significantly in
Georgia's political and economic discourse, nor have any
actions been taken to Embassy's knowledge that reflect such
an attitude. Canargo has sometimes commented to Emboffs that
its PSA does not provide for adequate incentives for further
exploration. However, the new Minister of Energy of Georgia,
Alexander Khetaguri, recently told Canargo he is willing to
change the PSA to make the potential rewards for development
greater. No mention has been made of trying to pull back
advantages granted under the PSA's. GOG policy has been to
withdraw the government from involvement in business and from
ownership of all but the most strategic of national assets.
"Resource nationalism" would run counter to the overall
direction of policy of the government in this regard.
TEFFT