Georgia is currently a minor oil and gas producer. However, it is a vital transit route for Caspian hydrocarbons. Oil from Azerbaijan and Central Asia crosses the country, largely via the Baku-Tbilisi-Ceyhan (BTC) pipeline. Georgia also transits Azerbaijani gas and is a key part of the strategic Southern Gas Corridor to Europe. To date, most drilling in Georgia has focused on shallower reservoirs. There is higher-cost potential in deeper reservoirs and offshore (Black Sea).