Iran, Azerbaijan Explore Caspian Sea Energy Projects

Iranian and Azerbaijani officials discussed in Baku on Wednesday the exploration and development of Caspian Sea oil and gas fields, in the latest rounds of talks between the two countries to tap into the rich oil and gas resources of the world's biggest lake.

At the invitation of the State Oil Company of Azerbaijan Republic President Rovnag Ibrahim Abdullayev, a delegation from Khazar Exploration and Production Company (KEPCO), headed by Mohsen Delaviz, the company's managing director, held talks with SOCAR's top officials, the National Iranian Oil Company's news portal reported.

"There is a huge ground for cooperation in the energy sector between Iran and Azerbaijan to help boost the two nation's economic development," Abdullayev said.

He also added that the two sides should make the best of the opportunity for joint exploration and development of the Caspian hydrocarbon resources.

"The terms of exploration and development in the region's oil and gas fields, sharing the latest technologies in the oil and gas industry and joint analysis of seismic data for exploring deep underwater hydrocarbon resources were among the key issues discussed in the meeting," Delaviz said.

Pointing to a preliminary agreement signed between SOCAR and the National Iranian Oil Company in 2015, the official said there is plenty of scope for bilateral collaboration in the energy sector.

As one of the oldest oil-producing areas in the world, the Caspian region is an increasingly important source of global energy production.

It holds an estimated 48 billion barrels of oil and more than 8 trillion cubic meters of natural gas in proven and probable reserves.

For the first time in more than a century, Iran discovered oil in its Caspian Sea waters in 2012, according to state media. The deposit, found at a depth of 2.5 kilometers, was estimated at that time to contain some 10 billion barrels of crude, or roughly 7% of Iran’s known reserves.

Despite making significant headways in exploiting oil and gas resources in the south, energy development in Iran's northern regions have been unimpressive in the past several years.