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GEORGIA: RUSSIAN OIL BEHEMOTH GOES TO ABKHAZIA
8/25/09

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Russian state oil company Rosneft has set up a subsidiary in the breakaway region of Abkhazia to produce oil from the Black Sea shelf, and to set up a gas-distribution network.

The new company, called RN Shelf of Abkhazia, will perform seismic oil prospecting, Russia’s Vedomosti newspaper reported on August 25. According to some preliminary estimates, the Abkhaz shelf could contain as much as 500 million tons of oil, Interfax reported. Other assessments provide more modest numbers.

The Russian oil giant’s entry into Abkhazia has left local companies and tourism agencies jittery. It also has drawn protests from Tbilisi. De facto Abkhaz leader Sergei Bagapsh dismissed the criticism, saying the Rosneft announcement will help spur competition. He also downplayed environmental concerns, noting that oil development is underway in other areas of the Black Sea, the Regnum news agency reported.

Posted August 25, 2009 © Eurasianet
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