SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                    FORM 8-K
                                 CURRENT REPORT
                     PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934


Date of report (Date of earliest event reported)     May 2, 2003
                                                  --------------


                           CANARGO ENERGY CORPORATION
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             (Exact Name of Registrant as Specified in its Charter)


          Delaware                      0-9147                    91-0881481
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(State or other jurisdiction   (Commission File Number)       (I.R.S. Employer
     of incorporation)                                       Identification No.)


        CanArgo Energy Corporation
        P.O. Box 291, St. Peter Port
         Guernsey, British Isles                         GY1 3RR
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  (Address of principal executive offices)              (Zip Code)




Registrant's telephone number, including area code     (44) 1481 729 980
                                                    --------------------


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       (Former Name or Former Address, if Changed Since Last Report)





ITEM 7. Financial Statements and Exhibits.

(c)      Exhibits


99.1    Pursuant to Regulation FD, CanArgo Energy Corporation is furnishing a
        copy of Deed of Variation of Management Services Agreement between
        CanArgo Energy Corporation and Vazon Energy Limited dated May 2, 2003.


ITEM 9. Regulation FD Disclosure.


Pursuant to Regulation FD, CanArgo Energy Corporation is furnishing a copy of
Deed of Variation of Management Services Agreement between CanArgo Energy
Corporation and Vazon Energy Limited dated May 2, 2003. The Deed of Variation is
attached hereto as Exhibit 99.1.

                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                                CANARGO ENERGY CORPORATION

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Date: May 10, 2003                              By: /s/Liz Landles
                                                  ----------------
                                                Liz Landles, Corporate Secretary

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                                    AGREEMENT


                                     BETWEEN


                           CANARGO ENERGY CORPORATION


                                       AND


                              VAZON ENERGY LIMITED





--------------------------------------------------------------------------------

                         DEED OF VARIATION OF MANAGEMENT
                               SERVICES AGREEMENT

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                                 McGrigor Donald
                                  Pacific House
                              70 Wellington Street
                                     GLASGOW
                                     G2 6SB
                            Telephone: 0141 248 6677
                       Facsimile: 0141 204 1351 / 221 1390
                         E-Mail: enquiries@mcgrigors.com
                       Web Site: http://www.mcgrigors.com
                  D:\NrPortbl\GIMANAGE\KELLYJONES\534821_3.DOC



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THIS AGREEMENT IS MADE AS A DEED ON 2ND MAY 2003:-

BETWEEN

(1)      CANARGO ENERGY CORPORATION, a corporation (Commission File Number
         0-9147) incorporated and existing under the laws of the State of
         Delaware, United States of America (the "COMPANY"); and

(2)      VAZON ENERGY LIMITED, (Company Number 32244) a company incorporated and
         existing under the laws of Guernsey, Channel Islands (the
         "CONSULTANT").

WHEREAS:

(A)      The Company and the Consultant entered into a management services
         agreement dated 30 June 2000 (the "MANAGEMENT SERVICES AGREEMENT")
         under which the Company obtained the services of the Consultant and the
         Consultant provided certain services to the Company on the terms and
         conditions of the Management Services Agreement; and

(B)      The parties wish to record their agreement and consent to the
         Management Services Agreement being amended and varied in accordance
         with the terms of this Agreement.


IT IS AGREED as follows:

1        INTERPRETATION

1.1      In this Agreement unless otherwise specified or the context otherwise
         requires:-

1.1.1    words and phrases defined in the Management Services Agreement shall
         bear the same meanings unless otherwise defined or amended herein;

1.1.2    references to this Agreement shall include the Recitals;

1.1.3    references to a Clause is to a clause of this Agreement;

1.1.4    words importing any gender shall include the other genders;

1.1.5    words importing natural persons shall include corporations and vice
         versa;

1.1.6    words importing the singular only shall include the plural and vice
         versa;

1.1.7    words importing the whole shall be treated as including a reference to
         any part thereof; and

1.1.8    any word or expression the definition of which is contained in or
         referred to in the Act shall be construed as having the meaning
         attributed to it.

1.2      In this Agreement the headings to the Clauses are inserted for
         convenience only and shall not affect the construction of this
         Agreement.

2        VARIATION OF THE MANAGEMENT SERVICES AGREEMENT

2.1      The parties to this Agreement agree and consent that with effect from
         the date of this Agreement, the Management Services Agreement shall
         be varied as follows:-


                                       2


2.1.1    In Section 1 of the Agreement the following new definition shall be
         inserted:


         "COMPENSATION COMMITTEE" means the compensation committee of the
         Company from time to time;


         "CHANGE OF CONTROL" means the acquisition or series of related
         acquisitions whether by purchase, transfer, renunciation or otherwise
         of any interest in the common stock of the Company by a single party
         if, upon completion of that acquisition or acquisitions, the single
         party, together with persons acting in concert or connected with him,
         would hold more than 50 per cent in number of the common stock of the
         Company;

2.1.2    Section 3 shall be deleted and replaced with the following:


         "This Agreement shall commence on June 30, 2000 and shall terminate
         upon the earliest to occur of:

          (i)   either party giving to the other not less than six (6) months
                written notice to terminate the Agreement, in which case the
                Agreement shall terminate six (6) months after the receipt of
                the notice;

          (ii)  the liquidation or dissolution of the Company;

          (iii) the mutual agreement of the parties to terminate this Agreement;
                or

          (iv)  the occurrence of an Event of Default.


         The  period during which this Agreement is in effect shall be known as
         the "TERM".


         Notwithstanding the provisions above, in the event of a Change of
         Control of the Company, the Company shall be required to give the
         Consultant not less than twelve (12) months written notice to
         terminate the Agreement."

2.1.3    Exhibit 3 shall be deleted and replaced with the following:


         "The Company accepts that work carried out by the Consultant under
         this Agreement may contribute to significant business progress for
         the Company, including for example without limitation, the
         acquisition of new projects, increase of revenue from existing
         projects, rationalisation of costs, increase in positive cash flow
         for the Company, successful corporate restructuring, merger, takeover
         or similar, or some such other event which is positive for the
         Company (the "EVENT"), and in these circumstances the Compensation
         Committee of the Company shall cause the Company to pay a
         discretionary cash bonus to the Consultant in an amount (if any) to
         be determined by the Compensation Committee which will take into
         account, inter alia, the value to the Company of the Event."

3        ACKNOWLEDGEMENTS


         The parties to this Agreement hereby acknowledge and agreed that,
         save as specifically and expressly amended by this Agreement, the
         Management Services Agreement shall remain as originally executed and
         in full force and effect.

4        COUNTERPARTS


         This Agreement may be executed in several counterparts, each of which
         shall be deemed an original but all of which shall constitute one and
         the same instrument.


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5        GOVERNING LAW AND JURISDICTION

5.1      GOVERNING LAW


         This Agreement shall be governed and construed in accordance with the
         law of England.

5.2      JURISDICTION


         The parties hereby irrevocably submit to the non-exclusive
         jurisdiction of the Courts of England as regards any claim dispute or
         matter arising out of or in connection with this Agreement and its
         implementation or effect.




EXECUTED AND DELIVERED as a deed on the date first above written.


EXECUTED AND DELIVERED AS A DEED


by CANARGO ENERGY CORPORATION acting by

/s/: Nils Trulsvik........................   Director
     -------------

Nils Trulsvik.............................   Full Name

/s/: Russ Hammond.........................   Director
     ------------

Jeffrey Frederick Russell Hammond.........   Full Name



EXECUTED AND DELIVERED AS A DEED


by VAZON ENERGY LIMITED acting by

/s/: David Robson.........................   Director
     ------------

David Robson..............................   Full Name

/s/: E A Landles..........................   Secretary
     -----------

Elizabeth Anne Landles....................   Full Name





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