Page 4 - FSUOGM Week 19 2021

FSUOGM COMMENTARY FSUOGM

Iran, Turkmenistan mull

Caspian co-operation

Bide has vowed to rejoin the Iranian nuclear deal and roll back sanctions,

which could be a boon for the country's Caspian Sea prospects

CASPIAN SEA OFFICIALS from Iran and Turkmenistan met how the oil and gas-rich sea’s resources should
in Tehran to discuss the two countries’ co-oper- be shared has left a number of high-potential
WHAT: ation in the oil industry, raising the prospect of upstream projects in limbo. Signalling a shared
Iran and Turkmenistan joint development of disputed Caspian oil and desire to resolve the disagreement, though, the
have discussed Caspian gas reserves. five states signed a landmark convention on 2018
oil cooperation. The talks come months after Turkmenistan on the Caspian’s legal status.
reached a landmark agreement with Azerbaijan Iran is seen as having the most obstinate
WHY: on joint development of the disputed Dostluk stance in the dispute. Prior to the USSR’s col-
Iran's stance in the field. It is further evidence of improving ties lapse, the country had control over 50% of the
Caspian Sea dispute between the Caspian littoral states, which have Caspian, as only two states bordered the sea.
appears to be softening. been locked in a dispute over the sea’s legal status Its government has previously called for equal
since the fall of the USSR. division by giving each country 20% of the
WHAT NEXT: Ali Osouli, the managing director of Khazar sea floor and surface by classifying it as a lake
Both Iran and Exploration and Production Co. (KEPCO), and using median lines to demarcate territory.
Turkmenistan have an Iranian state firm in charge of offshore oil The other littoral states want it treated as a sea,
discovered fields and gas exploration, met with Turkmenistan’s which would determine territory based on
offshore, but Iran's ambassador to Tehran, Ahmad Ghorbanov. the length of each country’s coast. This would
attempts at development According to Iran’s Shana news agency, Osouli put Iran, with the smallest Caspian coast, at a
have been thwarted by US suggested Turkmenistan might co-operate with disadvantage.
sanctions. Iran at oil and gas fields. Iran is the only country not to ratify the Cas-
Ghorbanov meanwhile expressed hope that pian convention, preventing its implementa-
Turkmenistan might use Iran’s services and tech- tion. However, Russian Foreign Minister Sergei
nical knowledge in deepwater operations, Shana Lavrov expressed hope last month that Tehran
reported. would take the step in the coming months.
“There is great potential for expanding Turk-
men-Iranian energy co-operation in the Caspian Iran
Sea, which could contribute to the two countries' Iran is also the only state yet to have launched oil
economic development,” he said. and gas production in the Caspian. According to
The long-standing dispute between Azer- the US EIA, Iran has around 500mn barrels of oil
baijan, Iran, Kazakhstan, Russia and Turkmen- and 57bn cubic metres of natural gas in proven
istan over maritime borders in the Caspian and and probable resources in the Caspian, but the

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