Georgia: Russia to Start Prospecting for Oil in Abkhazia

Russia's state-controlled petroleum company intends to prospect for oil and gas off the coast of the separatist territory of Abkhazia.

The deal signed May 27 between Rosneft and de-facto authorities in Sukhumi gives the company the right to prospect for hydrocarbons in the Abkhazian-controlled swathe of the Black Sea, Russia Today and Rustavi-2 reported. Rosneft is also planning to set up a network of gas stations around Abkhazia.

Georgia was quick to protest the deal, saying Abkhazia does not have the right to make such deals. Only Russia and Nicaragua have recognized Abkhazia's independence. "[The contract] is illegal and violates Georgian law on occupied territories," Georgian Minister of Economic Development Lasha Zhvania told a news conference.

Rosneft President Sergey Bogdanchikov said that his company will start drilling in 2010, Interpressnews reported. Some estimates indicate that off-shore Abkhaz fields hold up to 200 million tons of oil.