...

International arbitrage is unlikely to solve disputable issues between Turkmenistan and Azerbaijan

Oil&Gas Materials 4 August 2009 16:37 (UTC +04:00)

Azerbaijan, Baku, August 4 / Trend /

The issue on delimitation of border fields in the Caspian Sea between (Turkmenistan and Azerbaijan) is unlikely to be solved through the international arbitrage, Azerbaijani experts said. 

This issue has already been raised for over 10 years, Fund for Entrepreneurship and MarketEconomy Development Assistance, SOCAR's ex-head, Sabit Bagirov said. This issue is solved upon talks between Caspian countries. This issue is unlikely to be considered in the international arbitrage.

Turkmen President Berdymukhamedov said that differences occur around Kapaz fields (Serdar in Turkmen interpretation), as well as Azeri and Chirag (Osman and Omar).

However, development of Kapaz border field discovered in Soviet times by Azerbaijani geologists, is not implemented now. Despite it, Azerbaijan repeatedly offered Turkmenistan joint development of the field.

Baku is sure that Turkmenistan has beneficial interest in development of Kapaz field together with Azerbaijan. First of all, it is explained by presence of strong infrastructure for construction and transportation of extracted hydrocarbons. Several huge offshore oil and gas projects, including construction of platforms for oil and gas extraction in the sea were realized in Azerbaijan. There are special companies equipped with the necessary equipment and having qualified staff and work experience to construct such facilities in the country. There is no such infrastructure in Turkmenistan.

Moreover, Azerbaijan has powerful transport infrastructure: Baku-Tbilisi-Ceyhan (BTC) pipeline pumps oil to the Mediterranean Sea. There are Baku - Supsa and Baku - Novorossiysk pipelines, as well as possibility to deliver oil by railway to the Black Sea ports of Batumi and Kulevi in Georgia. Moreover, Azerbaijan has South Caucasus gas pipeline (Baku-Tbilisi-Erzurum), which is regarded as a component of the Nabucco pipeline, which will deliver gas to Europe.

According to the Azerbaijani Ministry of Industry and Energy, extractive resources of kapaz field hit 50 million tons of oil. The field was discovered in the USSR by Azerbaijani oil industry workers. It was called intermediate, as it was situated between Azerbaijan and Turkmenistan in Soviet times.

Regarding development of Azeri and Chirag fields, these fields are developed now by consortium of the biggest foreign companies, including BP, ExxonMobil, Statoil. Major oil production in Azerbaijan falls on block of Azeri-Chirag-Guneshli fields. Block of these fields has never been considered as disputable by either companies involved in the project, or by Azerbaijan.

Situation with the contract for development of Araz-Alov-Sharg can be demonstrative. BP, ExxonMobil and Statoil are also involved in development of these fields. After Iran voiced territorial claims, the project was frozen. Its implementation is connected with solving the Caspian status.

Do you have any feedback? Contact our journalist at: [email protected]

Latest

Latest