Background

Armenia is a landlocked country in the Southern Caucasus. It is bordered by Turkey to the west, Azerbaijan to the east, Georgia to the north and Iran to the south. The country was part of the Soviet Union: it declared its independence in 1991. Armenia is now a parliamentary democracy and enjoys excellent relations with Europe, the Commonwealth of Independent States and the US and there is a significant diaspora community. The country has a free and open market and encourages inward investment.

Armenia has been somewhat overlooked in terms of its hydrocarbon potential. Previous exploration was often sporadic in nature; the evaluation of the country's oil and gas potential requires further systematic exploration using modern geological and geophysical methods. A series of complex sedimentary basins are identified; many of the boreholes drilled encountered significant shows of oil and gas and extensive bitumen deposits are also indicative of a viable petroleum system.