The Georgian Oil and Gas Corporation (GOGC) has announced an international tender for consulting services to evaluate the future of the Baku-Supsa oil pipeline and its Black Sea terminal. As the current lease agreement with the BP-led Azerbaijan International Operating Company (AIOC) is about to expire, the government is reevaluating one of Georgia’s most strategic energy transit routes.
BP has operated the Western Route Export Pipeline (WREP), also known as the Baku-Supsa pipeline since 1996 under a long-term financial lease. But GOGC is revealing a potential shift.
Operations through the pipeline were disrupted by the war in Ukraine, with oil transport suspended in 2022. Although partially restored in 2023, throughput remains low, only 1 million tons have moved through the corridor in 2024 so far.
As stated in the tender, the winning consultancy firm will be responsible for delivering two reports:
- A Preliminary Analysis Report, which will include:
- Legal review of the Intergovernmental Agreement (IGA), Host Government Agreement (HGA), and commercial contracts;
- Infrastructure assessments in both Georgia and Azerbaijan;
- Regional transport and geopolitical risk evaluation;
- Opportunities for cost optimization;
- Market forecasts and stakeholder mapping.
- A Strategic Scenario Report which will define multiple pathways for future negotiations. The report must assess comparative risks, analyze stakeholder incentives and recommend optimal strategies, including contingency planning in case no deal is reached.
With energy routes in the Caucasus under international scrutiny, the future of the WREP stands is a high-stakes issue for regional energy security and Georgia’s economics.
