IRAN Intent On Keeping Pace with Caspian Basin Energy Development

IRAN INTENT ON KEEPING PACE WITH CASPIAN BASIN ENERGY DEVELOPMENT
Hooman Peimami: 8/19/03

Iran is intent on staying competitive in the great game to dominate Caspian Basin energy exports. Tehran has announced that it will begin developing its Caspian oilfields within the next two years, despite the fact that the five states bordering the sea have yet to agree on a territorial treaty. In addition, the construction of a pipeline from Iran’s Caspian port of Neka to Tehran will enhance the country’s export ability.

The Chief of Iran’s Caspian Oil Co., Mohammad Hossein Dana, announced June 25 that Iran will proceed with plans to extract oil from offshore fields, scrapping a policy of non-development that had been in place. Dana said that the new policy was necessary to reduce the chances of Iran losing potential investors and customers. He indicated that competition among the Caspian littoral states – Azerbaijan, Iran, Kazakhstan, Russia and Turkmenistan -- was the cause of Iran’s shift. "The Caspian Oil Company will soon be taking measures to keep abreast with these states in the development of the Caspian’s hydrocarbon wealth," Dana said.

Iran will develop resources only from its undisputed sectors of the Caspian Sea. The exact size of the Iranian oilfields, like those of other littoral states, is yet to be determined, although years of prospecting and development have prompted some officials to estimate that Iran’s Caspian oil reserves stand at more than 10 billion barrels. However, Dana stressed that more extensive exploration will be required to precisely determine the volume of extractable oil...

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http://www.eurasianet.org/departments/business/articles/eav081903.shtml