Three Firms Exploring for Oil in Armenia

A view of the Vardeneats Mountain Pass in the Vayots Dzor province of Armenia, where oil exploration is taking place


YEREVAN (Arka)—Three companies are exploring for oil in the territory of Armenia, Vardan Vardanian, the head of an energy and natural resources ministry department overseeing natural resource extraction, said Friday.

Vardanian said the territory of Armenia is divided into six blocks between the companies. He said the first and third blocks located in the north of the country are being explored by a Russian company, Armoil; the second block in Armavir province is being explored by Armenian company Integral Petroleum; and the fourth, fifth and sixth blocks in Gegharkunik and the southern regions are being explored by the Armenian subsidiary of Ireland’s Blackstairs Energy PLC.

Vardanian said the companies have obtained all necessary licenses and permits and will present their findings later. According to him, Armoil and Integral Petroleum were granted 5-year licenses in 2013 while Blackstairs Energy Armenia has extended its two-year license three times.

Oil exploration in Armenia began in the 1940s and 50s. It was stepped up in the 1960s, when several 4 km deep wells were drilled in Artashat and Hoktemberian regions near Yerevan. Some wells contained small amounts of oil and gas.

Before 1991 some 120 wells were drilled in Ararat Valley, but none contained enough oil for commercial development. The interest of foreign companies in Armenia increased in 2000 following a rise in global oil and natural gas prices.

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5 Comments

  1. Vindicated Man said:

    “Before 1991 some 120 wells were drilled in Ararat Valley, but none contained enough oil for commercial development.”
    It’s a blessing and a curse. The country relies on imported energy, which isn’t good. However, it’s not reliant on oil/gas proceeds. As a result, it has to develop better systems. Contrast this with the neighbor to the east that has gone totally dictatorial.

  2. Hratch said:

    It’s no surprise that all three companies are Russian oriented. Since Mother Russia has complete hegemony over the territory, it’s only natural that they will control and reap the benefits. The natives will provide manual labor for pittance and a few left over crumbs.

    • GeorgeMardig said:

      Without Mother Russia, there wouldn’t be Armenia, God Bless Mother Russia.

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