The five countries bordering Caspian Sea have, in principle, agreed on a division of lake that is rich in raw materials. In doing so, y cleared way for greater support for oil and gas in region. Iranian President Hassan Ruhani, however, restricted need for furr collusion in order to precisely divide seabed. The Caspian Sea is largest inland waterway in world.
As Kazakh President Nursultan Nazarbayev explained, States agreed to set up a 15-mile zone as a demarcation of ir respective territories. Ten miles beyond se territorial waters, countries bordering on m would have exclusive fishing rights. It was also stated in Convention that only riparian Parties may be present in Caspian Sea militarily.
Russia, Iran, Kazakhstan, Turkmenistan and Azerbaijan have been arguing about how to divide lake for almost three decades. After collapse of Soviet Union, Iran had proposed to split Caspian Sea into five equally large parts or to jointly develop its entire resources. None of four ex-Soviet states, however, had responded to se proposals.Many projects stagnated
The dispute has burdened numerous energy projects. This includes, among or things, a pipeline through Caspian Sea, which will be used in competition with Russia to bring natural gas from Turkmenistan to Azerbaijan and furr to Europe. Russia claimed environmental concerns against project. It is still unclear wher project will be concluded after agreement that has now been reached. The grant rights to several oil and gas reserves are also controversial.
Expert Ashley Sherman of consulting firm Wood Mackenzie described signing of agreement as a milestone for region. Now, stalled projects could be picked up again. However, it is not to be expected that this will increase production rapidly, because disputed fields are significantly smaller than already developed giant development areas.Updated Date: 13 August 2018, 12:00