BAKU, Azerbaijan, January 23
By Jeila Aliyeva - Trend:
The memorandum of understanding inked on Dostlug oil and gas field in the Caspian Sea could be the very start of a long-awaited political settlement for joint operations between Azerbaijan and Turkmenistan in the Caspian Sea, Ashley Sherman, Wood Mackenzie’s Principal Analyst for Caspian oil and gas told Trend.
“Dostlug – historically known as Kapaz in Azerbaijan and Serdar in Turkmenistan – is the largest discovered oil and gas resource in disputed waters in the south Caspian Sea,” he said.
Furthermore, Sherman noted that an oil-led development would be commercially and technically attractive. Oil exports could transit Azerbaijan for export to international markets – just like Azerbaijan’s own production and sizeable Turkmen volumes do now.
“The deposit lies on a prolific hydrocarbon trend, nestled between BP’s super-giant ACG oil field in Azerbaijan and PETRONAS’ Block 1 in Turkmen waters,” noted the company, adding that the bilateral desire for greater energy cooperation has steadily increased since the signing of the Caspian Sea legal convention in 2018.
If there is further progress, there are lots of details to agree on – especially the economic terms for an unprecedented co-investment. The status of Buried Hill Energy’s existing license in Turkmenistan and the willingness to attract international partners must also be clarified added to the message.
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