This small seaside town specialises in the fishing industry. It enjoys a very pleasant location, just at the mouth of the Kura River. The region has significant reserves of oil and gas, which explains the current name of the city, which means «oil wells». In the past it was called Khangishlagi, or approximately "winter khanate." It was in fact close to the town that the herds were gathered during the winter to protect them from cold weather in the very mild climate.

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