Azerbaijan, Baku / corr Trend A.Badalova / The declaration to be signed at a summit of the Caspian littoral countries will not resolve disputable issues on Kapaz and Araz-Alov-Sharg oil fields, according to Andrey Fedorov, Alfa Bank analyst for oil and gas.
"The declaration reflects the intention of cooperation, and does regulate [disputable] issues [regarding fields]. The next stage is required in this respect," Fedorov said in a telephone talks on 24 August.
By mid-October 2007 Tehran will host a summit of the Caspian littoral countries in which there are plans to sign a declaration. The document has been developed by the Foreign Ministers of the Caspian littoral countries. The declaration is a trend, whereas the disputable issues can be resolved in another format, the analyst said.
Azerbaijan and Turkmenistan cannot reach an agreement on the distribution of the Caspian Sea into national sectors and who the border field Kapaz (called by Sardar by Turkmenistan) belongs to. During the Soviet period the field was named 'Intermediate' because of its location in the middle line between Azerbaijan and Turkmenistan.
Azerbaijan and Iran have similar dispute over the status of the Caspian and Araz-Alov-Sharg fields.
"For the time being the disagreements are almost irresistible, because the oil companies in the region have state lobby. A change in the position of the heads of state [of Caspian littoral countries] could occur on the basis of concluding commercial agreements at the level of companies. However, this process is not predicted," the analyst said.
Before the USSR collapsed, the Caspian Sea's legal status was based on Soviet-Iranian agreements of 1921 and 1940. Currently, lack of the parameters of delimitation of the oil and gas prospective fields amongst the littoral countries has resulted in the necessity for a new legal status of the Caspian Sea based upon an agreement by all five littoral countries ( Azerbaijan, Russia, Turkmenistan, Kazakhstan and Iran).
"Perhaps if companies from the countries would closely co-operate in the projects to develop the oil and gas shelf, it could give impetus to the resolution of the issue. Then, the parties would reach an agreement soon," Fedorov said.
The summit in Tehran will be the second one held, the first being held in Ashgabat in 2002. It was then agreed by the Presidents that such high profile meetings would become an annual event. However, the next summit did not take place and over that period the leaders in Iran, Azerbaijan and Turkmenistan changed.
The summit in Tehran will be the second one held, the first being held in Ashgabat in 2002. It was then agreed by the Presidents that such high profile meetings would become an annual event. However, the next summit did not take place and over that period the leaders in Iran, Azerbaijan and Turkmenistan changed.