BAKU, Azerbaijan, Jan.22
By Leman Zeynalova – Trend:
The announcement of joint development of the Dostlug field by Azerbaijan and Turkmenistan further opens up the possibility of exploration in the Caspian Sea which remains largely unexplored, Rystad Energy’s upstream analyst Swapnil Babele told Trend.
He was commenting on the memorandum of understanding inked between Azerbaijan and Turkmenistan on Jan.21 on the exploration and development of Dostlug oil and gas field in the Caspian Sea.
Babele pointed out that the field lies in proximity to Azerbaijan’s giant Azeri-Chirag-Guneshli (ACG) field, hence it provides Turkmenistan with an option to transport the hydrocarbons produced from the field through the existing structures on the Azerbaijani side.
Azerbaijan already has the expertise to develop the offshore fields, as many of the producing fields lie in proximity to ACG and Dostlug, he added.
“Both Azerbaijan and Turkmenistan are witnessing a decline in liquids production, the field will help them maintain the liquids production in the short term. This positive outcome might possibly inspire fresh talks on the long proposed Trans Caspian pipeline, might open new gas markets for Turkmenistan which majorly exports gas to China. Azerbaijan has already started supplying gas to South Eastern Europe via network of gas pipelines which are part of the Southern Gas corridor,” Babele concluded.
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