Page 4 - FSUOGM Week 04 2021

FSUOGM COMMENTARY FSUOGM

Azerbaijan, Turkmenistan boost

Caspian co-operation

The deal has raised prospects that the Trans-Caspian Pipeline might make
some progress, but the project still faces considerable obstacles

CASPIAN SEA AZERBAIJAN and Turkmenistan have reached Project history
a landmark agreement on joint development of Turkmenistan awarded a 25-year produc-
WHAT: a disputed Caspian oil and gas field. The show of tion-sharing agreement (PSA) for offshore Block
Azerbaijan and increased co-operation has raised hopes that the 3 containing Dostluk in 2007 to Cyprus-regis-
Turkmenistan have long-awaited Trans-Caspian Pipeline (TCP) to tered Buried Hill. The block lies adjacent to
agreed to jointly develop bring Turkmen gas to Europe might finally make Azerbaijan’s flagship Azeri-Chirag-Gunashli
a long-disputed Caspian some headway. (ACG) oil project.
Sea field. The foreign ministers of the two Cas- Little modern exploration work has taken
pian neighbours signed a memorandum of place at the site. Buried Hill undertook some
WHY: understanding (MoU) on January 21 in the seismic surveying but has been unable to
The pair can earn more Turkmen capital Ashgabat on joint explo- advance to the drilling phase because of the ter-
revenues from offshore ration and development of the Dostluk ritorial dispute. An Azeri gunboat even forced
production by increasing field. Turkmen President Gurbanguly Ber- one of the company’s seismic vessels to cease its
their co-operation. dimukhammedov and his Azeri counterpart, activity in 2008.
Ilham Aliyev, both took part in a signing cer- In a confidential report in January 2012
WHAT NEXT: emony via video link. obtained by NewsBase, however, Buried Hill
The Trans-Caspian Dostluk, meaning friendship, was discovered estimates the block’s 2C contingent oil resources
Pipeline is still an by Soviet explorers in 1986 and used to be known at 1.36bn barrels, with a further 2.5 trillion cubic
unlikely prospect, given as Serdar by Ashgabat and Kapaz by Baku. But feet (70bn cubic metres) in gas. It estimated that
the commercial and the development has been held up by a territorial the block could flow 300,000 barrels per day
political obstacles it dispute between Azerbaijan and Turkmenistan (bpd) of oil.
faces. which began after the USSR’s collapse. The company stated in that report that it was

P4 www. NEWSBASE .com Week 04 27•January•2021