Gas monetisation
Developing a world-class gas asset
Project III, Block’s flagship venture in Georgia, seeks to unlock the massive undeveloped gas resource located in the Lower Eocene, Palaeocene and Upper Cretaceous reservoirs spanning the company’s XIB and XIF licences.
With internal estimates indicating Total 2C Contingent Resources of 2.77 TCF, a further 574 BCF of 2U Prospective Resources, and an NPV10 of US$2.2bn, Project III has been declared a strategic gas resource by the Georgian state.
In April 2026 Block executed a binding framework agreement for the farm-out of Project III with leading Chinese chemical company Sanning, according to which Sanning will carry Block for up to US$75m through appraisal drilling and early facilities construction.
Sanning has committed a firm US$13m to apprasing the Project’s Patardzueli-Samgori reservoir, for which internal estimates indicate 1,074 BCF 2C Contingent Resources.
Highlights
Project III is Block’s flagship gas project in Georgia, targeting resources across the Lower Eocene, Palaeocene and Upper Cretaceous reservoirs within the XIB and XIF licences. Internal estimates indicate 2.77 TCF of 2C Contingent Resources and a further 574 BCF of 2U Prospective Resources, with a 2C NPV10 of US$2.2bn.
Block has signed a binding farm-out framework agreement with Sanning, which will carry up to US$75m of appraisal and early development costs. The programme includes a firm US$13m commitment to appraise the Patardzueli-Samgori reservoir and targets initial production of 20 MMCF/d, with appraisal success expected to advance the project toward full field development.
2.77 TCF
Total 2C Contingent Resources
US$2.2bn
2C NPV10
US$75m
Farm-out Carry by Sanning
20 MMCF/d
Initial Production Target
A transformative agreement
The framework agreement opens Project III to the vast gas market served by Sanning, one of China’s leading privately held chemical groups, which produced 11.5 million tonnes of chemical products in 2025, generating revenues of more than US$2.8bn.
Sanning will acquire 51% of Project III, with Block holding 49% and retaining operatorship throughout the appraisal programme, designed to advance Patardzueli-Samgori’s 1,074 BCF 2C Contingent Resources to Reserves, and trigger full field development planning.
The programme targets initial production of 20 MMCF/d (around 3,300 boepd) in the 2C case, which will be monetised through the rapid construction of an early gas processing facility and associated intra-field and sales gas pipelines. Success with the US$13m Patardzueli-Samgori programme will give Sanning the option for a follow-on appraisal of the Project’s Rustavi and Teleti fields, for which Block, as operator, would be carried for $62m.
| Operational work programme |
|---|
| Work programme | Status | Indicative investment |
|---|---|---|
| Pat-Sam appraisal | Firm | 2x LE re-tests, 2x LE inclined sidetracks, 1x UC re-test (c.US$13m) |
| Pat-Sam facilities | Contingent | Gas production facilities, pipelines and ancillaries (c.US$12m) |
| Rustavi appraisal | Optional | 2x new LE/UC wells (c.US$13m) plus facilities (c.US$12m) |
| Teleti appraisal | Optional | 2x new LE/UC wells (c.US$13m) plus facilities (c.US$12m) |
Other projects
Gabon
Our entry into offshore Gabon marks a significant step in our growth strategy, adding discovered resources, exploration upside, and exposure to a mature hydrocarbon province
Project I
Project I combines established production, development potential, and innovative drilling techniques to generate cash flow, support future growth, and maximise value across the wider portfolio
Project II
Project II is focused on realising the substantial potential of the Patardzeuli-Samgori field, leveraging a large contingent resource base, proven production history, and attractive development opportunities
Project IV
Project IV targets significant exploration upside across multiple licences, supported by a strategic farm-out partnership and a fully funded programme designed to unlock substantial resource potential
Carbon Capture and Storage
Our CCS initiative has the potential to establish a major CO₂ storage hub in Georgia, supporting industrial decarbonisation and contributing to long-term net-zero objectives
Commercialisation
With established operations in Georgia and a new platform in Gabon, we are pursuing defined routes to commercialisation through market access, infrastructure, and low-cost entry into proven hydrocarbon provinces