Page 7 - MEOG Week 47 2021

MEOG PIPELINES & TRANSPORT MEOG

Iran sees Azerbaijan deals aiding

transport of oil and gas to Europe

IRAN IRAN and Azerbaijan plan to sign agreements Astara. In 2011, Iran announced the discovery
on the joint development of oil and gas fields in of the Sardar Jangal field in the Caspian Sea, with
the Caspian Sea, allowing Tehran to sell oil to reserves estimated at 1.4 trillion cubic metres of
Europe, IRNA reported on November 22. gas and 2bn barrels of oil.
It is not just US sanctions on Tehran that have The field is located in a disputed territory
hindered such a deal till now, the poor state of oil between Azerbaijan and Iran. Baku adheres to
infrastructure linking the two countries is also the borders established during the Soviet era,
seen as a big difficulty. but Tehran has demanded an expansion of its
Iran and Azerbaijan intend to sign several territory.
agreements, including on the joint development In August, Iran’s KEPCO announced the dis-
of Caspian Sea fields, Javad Owji, Iran’s oil min- covery of the Chalus supergiant gas field in the
ister, confirmed. Caspian.
Owji, who met with Deputy Prime Minister The head of the company, Ali Osuli, said that
of Azerbaijan Shahin Mustayayev in Tehran, the structure could contain 30% of all recovera-
said: “Agreements were reached. Initial negotia- ble gas reserves in the Caspian Sea, and KEPCO
tions were conducted on a deal with Azerbaijan planned to start exploration drilling using its
involving a gas swap and fuel supply to [the Azer- own semi-submersible floating drilling rig in
baijani exclave] of Nakhchivan and the develop- the near future.
ment of oil and gas reserves in the Caspian Sea. “In case of successful exploration work
“We hope that in coming weeks we will on the Chalus structure and accuracy of esti-
expand the cooperation, including on the devel- mates, the Iranian sector of the Caspian Sea will
opment of two offshore fields.” become a new global energy hub, which will
Iran and Azerbaijan have been exchanging have the potential to provide 20% of Europe’s gas
gas since 2004. Iran supplies fuel to Nakhchivan needs,” Osuli was quoted as saying in a KEPCO
as well as to the Azerbaijani border town of statement.™

Week 47 24•November•2021 www. NEWSBASE .com P7