1 Table of Contents 1
1.1 List of Tables 2
1.2 List of Figures 2

2 Regime Overview 3

3 State Take Assessment 5

4 Key Fiscal Terms 6
4.1 Royalties, Bonuses and Fees 6
4.1.1 Bonuses 6
4.1.2 Regulatory Fee 7
4.1.3 Natural Resources Usage Fee (Paid by State) 7
4.2 Baseline Production (Blocks XIB and XIE) 7
4.3 Cost Recovery 7
4.3.1 Limit on Recovery 7
4.3.2 Recoverable Costs 7
4.4 Profit-Sharing 8
4.5 Direct Taxation 8
4.5.1 Profit Tax (Paid out of State Share of Profit Oil) 8
4.5.2 Deductions and Depreciation 8
4.5.3 Withholding Tax 8
4.6 Indirect Taxation 9
4.6.1 Value Added Tax and Customs Duty Exemption 9
4.6.2 Property Tax 9
4.7 State Participation 9
4.8 Stability Provisions 9

5 Regulation and Licensing 10
5.1 Legal Framework 10
5.1.1 Governing Law 10
5.1.2 Contract Type 10
5.1.3 Title to Hydrocarbons 10
5.2 Institutional Framework 11
5.2.1 Licensing Authority 11
5.2.2 Regulatory Agency 11
5.2.3 National Oil Company 11
5.3 Licensing Process 12
5.4 License Terms 12
5.4.1 Duration and Relinquishments 12
5.4.2 Work Obligations 12

6 Outlook 13

7 Contact Information 14

1.1 List of Tables
Table 1: Summary 3
Table 2: Georgia, Signature Bonuses (US$), 2008 Tender 6
Table 3: Georgia, Commercial Discovery Bonuses (US$ million), Selected PSAs 6
Table 4: Georgia, State Share of Profit Oil (%), Selected PSAs 8
Table 5: Georgia, State Back-In Right (%), Selected PSAs 9

1.2 List of Figures
Figure 1: Regime Flow Chart 4
Figure 2: Georgia, Indicative NPV10/boe, IRR and State Take Comparison - Regional, 2016 5
Figure 3: Georgia, Legal Framework 10
Figure 4: Georgia, Institutional Framework 11