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    Central Asia
     Jul 13, 2012


Ashgabat soothes Caspian row
By Robert M Cutler

MONTREAL - The Turkmenistan Foreign Ministry affirmed this week its readiness to continue negotiations with Azerbaijan over the status of an oil field disputed between them in the Caspian Sea.

Relations between the two countries worsened last month as they exchanged accusations over an incident around the oil field at the center of their dispute, which Azerbaijan names as "Kyapaz" and Turkmenistan as "Serdar". The disagreement centers on the subsea delimitation for natural resources under the bed of the Caspian Sea.

Turkmenistan criticized Azerbaijan for taking "illegal action" against one of its seismic exploration vessels that had ventured near the disputed area, while Azerbaijan said Turkmenistan had

 

violated a 2008 agreement reached between the two countries' presidents to suspend exploration pending resolution of the dispute.

The dispute over the oil field has prevented the two countries from cooperating on energy exploration and development in the Caspian Sea almost since their independence in the aftermath of the disintegration of the Soviet Union in late 1991. It has notably been a principal roadblock on the path to agreement over terms of constructing a Trans-Caspian Gas Pipeline (TCGP).

Turkmenistan, now a major exporter of natural gas, had threatened to take the question to international arbitration, a move that would be seen as hopelessly delaying still further any prospects for the TCGP. Turkmenistan's president Saparmurat Niyazov first issued this threat in the middle of the last decade, and it has been periodically renewed by his successor, Gurbanguly Berdimuhamedow.

The reason why it has never been acted upon, and never will be, is that there is nowhere for Turkmenistan to go. The matter of delimiting subsea exploration and development rights for natural resources is a question of international law and not industrial arbitration. Consequently, the only possibly competent venue is the International Court of Justice (ICJ).

However, the ICJ is prevented from affirming its jurisdiction over the matter because Turkmenistan has never deposited the required legal instrument that would recognize such jurisdiction. It is required that both parties to a dispute recognize the ICJ's jurisdiction before the ICJ will take a case. Also, it is open to discussion whether Azerbaijan's recognition of the ICJ's competence in certain matters would extend to the question at hand.

The seismic vessel incident came as a surprise to observers. Relations between the two countries were extremely difficult during the presidencies of Heydar Aliev in Azerbaijan and Niyazov in Turkmenistan. However, after the former died in 2003 and the latter in 2006, their respective successors, Ilham Aliev and Berdimuhamedow, found ways to ameliorate bilateral relations.

In particular, they publicly agreed that their two countries could decide to develop contested deposits and to construct the TCGP, without requiring the approval of Iran, Kazakhstan, or Russia, the three other Caspian Sea littoral countries. This is a correct view under international law and put paid to the objections, voiced mainly by Iran and Russia, that a comprehensive multilateral agreement on the status of the Caspian Sea was necessary first.

If that were in fact the case, then Kazakhstan and Russia would also have had to wait before jointly developing offshore gas fields located at the boundary of their respective subsea sectors, and Iran's recent announcement that it will deploy submarines in the Caspian Sea would represent an illegal provocation.

In July 2001, Iran used a display of military force to block a vessel chartered by energy firm BP from exploring the Alov deposit ("Alborz" according to Iran), which by no construction could lie within any dimension of a sector that Iran could possibly claim under the various conventions of international law that govern such delimitations.

Over the past six years, Azerbaijan and Turkmenistan have settled all outstanding bilateral government debts, engaged in a raft of goodwill gestures, and set up a bilateral commission to enhance cooperation and address problems of interest.

Analysts in the region itself speculate that Turkmenistan did not act on its own in making noises over the latest dispute, and was goaded or persuaded, in one manner or another, by Russia and/or Iran. Oddly, the incident occurred one day after the publication of a false report in the Russian media quoting the head of the European Union's office in Turkmenistan and Kazakhstan, Aurelia Bouchez, to the effect that an agreement on the TCGP would be signed the next day.

What Bouchez in fact said was that the EU sees no political or environmental obstacles to building the TCGP, that the delimitation issue ought not to prevent construction (Norway and the United Kingdom had an identical conflict in principle in the North Sea and just went ahead together in practice), and that the EU was ready to finance the project. The EU has been assisting in the bilateral negotiations between Azerbaijan and Turkmenistan since late last year.

Dr Robert M Cutler (http://www.robertcutler.org), educated at the Massachusetts Institute of Technology and The University of Michigan, has researched and taught at universities in the United States, Canada, France, Switzerland, and Russia. Now senior research fellow in the Institute of European, Russian and Eurasian Studies, Carleton University, Canada, he also consults privately in a variety of fields.

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