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Dostlug field - major breakthrough in Azerbaijani -Turkmen energy relations

Oil&Gas Materials 28 January 2021 15:21
Dostlug field - major breakthrough in Azerbaijani -Turkmen energy relations

BAKU, Azerbaijan, January 28

By Jeila Aliyeva - Trend:

The agreement on the Dostlug field constitutes a major breakthrough in Azeri-Turkmen energy relations, energy security specialist John Roberts told Trend.

Its importance extends far beyond the issue of how much oil or gas it adds to regional production since it provides concrete proof that the two countries can cooperate effectively on highly complex energy issues,” he said.

Roberts added that it is now possible to envisage not only the production of oil from the Dostlug field but also the transport of gas from Turkmenistan’s Caspian Sea producers to Azerbaijan, and via Azerbaijan to potential customers in Turkey or even further afield.

“The importance of the historic dispute between Turkmenistan and Azerbaijan over the field that the Turkmens called Serdar and the Azerbaijanis called Kyapaz - and which they have jointly renamed Dostlug (friendship) - concerned not only the development of a field but because failure to resolve the issue prevented much broader cooperation that could ensure a steady flow of Turkmen gas to – and through – Azerbaijan,” noted Roberts.

It is now possible to envisage a linkup between Block One, a set of Turkmen gas fields in the Caspian, and nearby facilities in Azerbaijani waters that would enable Turkmen gas to flow westwards.

Commercial prospects for such development took a major step forward in October 2014 when Malaysia’s Petronas Carigali, which operates Block One under a production sharing agreement with the Turkmen Government, took a 15.5 percent stake in Azerbaijan’s giant Shah Deniz Gasfield, which has production platforms just over 100 kilometers from Block One, he said.

He also added that what the Dostlug agreement means is that the political prospects for such a linkup also look to be highly favorable.

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Follow the author on Twitter: @JeilaAliyeva

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