AZERBAIJAN - Russian-Kazakh Deal For North Caspian.
This first bilateral deal between any of the littoral states finally cleared the way for the various consortia to develop the Azeri-claimed zone of the southern Caspian. It gave much needed security to AIOC, by far the biggest among these consortia in Azerbaijan.
On the other hand, only the seabed is addressed in the July 6 deal. The agreement specifically states that other issues such as pipelines and telephone cables will have to be governed by subsequent accords. This gives Russia the right to veto the "trans-Caspian corridor", a US-proposed system of undersea pipelines for crude oil and gas to be pumped from Kazakhstan, Turkmenistan and Uzbekistan to a point near Baku and then to run overland to transit through Turkish territory (see OMT).
Although the July 6 deal directly benefits the huge northern Caspian consortium, Offshore Kazakhstan International Operating Co. (OKIOC), it deals a blow to the latter's and AIOC's plans to have an oil export route independent from the Russian pipeline system. The deal has various other implications.
|Printer friendly Cite/link Email Feedback|
|Publication:||APS Review Gas Market Trends|
|Date:||Jul 10, 2000|
|Previous Article:||AZERBAIJAN - Socar Improving Services.|
|Next Article:||AZERBAIJAN - Socar's Gas Production.|