Economy
Posted: 2 months ago

Kulevi Oil Refinery to Cheapen Fuel by 15%-20% in Georgia

Pazis Oil Company is implementing Kulevi high-technology oil refinery project worth over $1 billion.

As noted by Pazis Oil executive director Gia Shavdia, the current economic and epidemiological situation in the world and the current geopolitical situation in the region have badly affected the project implementation process, as well as the inflow of foreign investments. Nonetheless, the company tries to get adjusted to the situation and not to suspend the project implementation. Negotiations are underway with potential investors. Designing works are also underway in partnership with several global consulting and designing companies, including Deloitte & Touche.

Negotiations proceed for with the world’s major oil company Shell Global Solutions, French Company Xenes and Spanish company Technical Reunidas purchase of technological licenses”, Gia Shavdia said. The company expects to regain the planned indicators in spring 2021. After building the first Euro-standard oil refinery in Georgia, the fuel prices on the domestic market will cheapen by 15%-20%. Crude oil will be primarily imported from Kazakhstan. Reserve oil supply sources will be arranged from Libya and Saudi Arabia.

The oil refinery will process 4.2 million metric tons of crude oil a year to manufacture Euro-5 and EURo-6 oil products that will considerably improve the ecological environment in the country. The Government of Georgia provides overall support to the project implementation and we hope this support will further grow, Gia Shavdia pointed out.