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Any planning for the exploitation of Caspian Sea resources, and its transfer to
international markets should, stress optimum protection of interests of the littoral
nations, while preparing the grounds for the expansion of cooperation and promotion of
political and economic relations among all of the regional countries.
In the past, the Caspian Sea was
world famous for its caviar, whereas today, it is known for its hydrocarbon resources.
International statistics put oil
and gas reserves in the Caspian Sea region at 15 to 30 billion barrels of oil and 6.7 to 9
trillion cubic meters of gas, respectively, while the amount is possibly much higher than
the said figures.
Five factors should be available
for the implementation of oil projects in the Caspian Sea region: legal regime of the
Caspian Sea, regional political stability, investment, technology and pipelines for the
transfer of oil and gas.
Given the vulnerability of the
Caspian Sea ecosystem, careful attention should be given to the process of the
exploitation of oil resources of the sea in order to prevent possible damage.
In the formulation of the legal
regime of the Caspian Sea, the principle of lasting exploitation should be taken into
consideration.
From a theoretical point of view,
the southern route for the transfer of oil and gas from the Caspian region is the best
option.
Equations concerning
participation in the Caspian Sea energy projects are not confined to mere investments but,
rather, have complicated dimensions
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Introduction
Following the collapse of the former Soviet Union, the number of littoral states of the
world's largest landlocked sea, the Caspian, rose from two to five. the Neighborhood of
the independent states of Kazakhstan, Turkmenistan and Azerbaijan, as well as Iran and
Russia, has created a new condition for the exploitation of resources of the sea.
Obviously, any planning for the exploitation of Caspian Sea resources and its transfer to
international markets should stress the optimum protection of interests of the littoral
nations, while preparing the grounds for the expansion of cooperation and the promotion of
political and economic relations among all of the regional countries.
Under the status quo, careful attention should be paid to setting up mechanisms for
cooperation among the littoral states and the optimal utilization of the Caspian Sea
resources. Exploitation of the great of oil and gas resources has further underlined the
importance of the region. Prior to the recent developments, the Caspian Sea was famous for
its caviar, whereas today, it is known for its hydrocarbon resources.
The Caspian Sea is rich in valuable biological and hydrocarbon resources. Western
statistics put the value of biological resources of the sea at 200 to 500 billion dollars,
with 5 to 6 billion dollars worth of fishery products. Presently, 600,000 tons of various
types of fish and 250 tons of caviar, or about 80 percent of the world caviar output, are
obtained from the sea annually.
Figures on the oil and gas reserves of the sea, figures are becoming more realistic after
the previous exaggerated estimates. The latest statistics released by international bodies
such as Energy Information Administration (EIA) and International Energy Agency(IEA), put
the definite oil reserves between 15 to 30 billion barrels, while figures for estimated
reserves are 60 to 150 billion barrels, or 1.5 to 4 percent of the world's total reserves.
The same data measures definite gas reserves between 6.7 to 9 trillion cubic meters, or
about 17 trillion cubic meters of estimated reserves, some 6 percent of the world's total
gas reserves.
Among the Caspian Sea littoral states, three are landlocked, while Iran, enjoys a
strategically important location with the shortest and most economical route for access to
international waters of the Persian Gulf and Oman Sea and the safest route to reach Europe
through Turkey.
Moreover, Iran's experience during the past 90 years in the oil and gas industries, oil
and gas installations, port facilities, refineries, and oil and gas pipelines, provides an
outstanding opportunity for exporters in the region. Iran's gas pipeline is connected to
the Republic of Azerbaijan and is in the neighborhood of Turkmenistan. The pipeline which
connect Kazakhstan and Turkmenistan to the network, is at least four times shorter and
cheaper than other proposed connection to the Black Sea or the Mediterranean.
Iran enjoys over 1550 KM of joint borders with turkmenistan, azerbaijan and armenia ans
also shares 1050 KM of borders with the caspian sea. This fact, and also its strategically
important positioning between the Persian Gulf and the Caspian Sea, has made Iran an
important bridge between the two regions.
Today, given the present economic bottlenecks, the newly born littoral Republics are
hopeful to turn their oil and gas exports into a "lever for economic
development". However, it should be noted that the successful implementation of oil
projects in the Caspian Sea depends on five main factors, some of which are beyond the
jurisdiction of foreign oil companies. The five factors are the Caspian Sea legal regime,
regional political stability, capital, technology and oil pipelines.
Currently, Iran and Russia hold almost common views on the legal regime of the Caspian Sea
and believe that following the recent developments in the region, which resulted in the
emergence of the independent states, any legal regime should be compiled on the basis of a
general consensus. Despite the fact that the littoral states are still negotiating the
legal regime of the Caspian Sea, international oil companies are pressing for the
exploitation of the regional resources. However, it should be noted that oil exploitation
from the Caspian Sea should be to the extent that it will least damage the ecology of the
sea.
While investing in the transfer of modern technology for the exploitation of oil, it
should be kept in mind that the Caspian Sea is a unique environmental ecosystem prior to
being the arena for the rivalries of major oil companies. This vulnerable ecosystem has
limited tolerance of industrial activities in the absence of international standards.
Therefore, optimum environmental considerations should be observed so that exploitation of
oil reserves in the Caspian Sea will not threaten its ecosystem.
Presently, the Caspian Sea is being exposed to the following environmental threats: rising
surface during the past two decades heavily damaging coastal and port facilities,
excessive fish catch exposing specific types of fish, such as caviar to the danger of
extinction, and pollution due to the flow of industrial wastes and oil exploitation.
Another point of prime importance for the political stability of the region is the
assessment over the security of the transfer of energy. should it be made on the basis of
the security of nations, governments or that of investments. which ever outlook it all has
its own meaning and mechanism.
Meanwhile, making a decision on laying a new pipeline for the transfer of the Caspian Sea
oil, and the implementation of the project takes time. But experts believe that, under the
status quo, and given the oil price slump in 1998, there is (a faint possibility) for the
implementation of most oil and gas projects in the Caspian Sea prior to the year 2001.
A Scene from the 2nd International Conference
on caspian oil and gas , in Tehran
Second international
conference on Caspian Oil and Gas resources
The second International Conference on the Caspian Sea Resources was opened by Institue of
International Energy Studies in Tehran with the participation of 170 oil experts from 30
countries, and 200 local personalities on November 7, 1998.
According to the Secretary of the conference Mohammad Ali Mousavi, the secretariat
received 120 articles from the participant countries, of which, 38 were presented at the
gathering. Regional countries and foreign companies offered their plans and proposals in
the areas of oil, gas and environment in the Caspian Sea during the two-day conference.
The first conference on oil and gas in the Caspian Sea was held in Tehran in 1995 and
aimed at bringing decisions of the littoral states on the exploitation of the resources of
the sea closer to each other.
Views expressed by officials of the littoral states
Oil Minister of the Islamic Republic of Iran, Bijan Namdar Zanganeh highlighted his
ministry's outlooks towards oil and gas in the Caspian Sea region. He underscored the
significance of cooperation among the littoral states for the compilation of the legal
regime of the Caspian Sea as a prerequisite for attracting the attention of any investor.
He said that the application of unilateral policies or bilateral agreements, irrespective
of the collective interests of littoral states, would not prove successful. Zanganeh
further remarked that if present free trade bottlenecks the Caspian Sea were removed,
international oil and gas companies would enter into giant energy projects in the region.
Pointing to the specifications of the 390 km Tehran-Neka pipeline project which will be
launched in 2001 with the capacity of 380,000 barrels per day, Zanganeh voiced Iran's
readiness for receiving and reprocessing crude oil in the Caspian Sea, and its swap at oil
terminals in the Persian Gulf. He termed the initiative as a positive step towards
facilitating energy exports in the region.
Zanganeh also pointed to the laying of a 200 km pipeline from Turkmenistan to Iran with
the annual potential of 4 billion cubic meters of gas, and said that negotiations are
underway for the implementation of the project for the export of Turkmen gas to Turkey and
Europe via Iran. The Iranian Oil Minister announced Iran's readiness for cooperation in
every way for the development and export of Caspian Sea energy resources, and voiced
Iran's interest for the purchase of the excessive Caspian Sea oil and natural gas, as of
the year 2001, at preferential rates. Zanganeh expressed hope that in light of collective
cooperation, the Caspian region will soon experience lasting development, and obtain the
status it deserves in international trade.
In continuation, Ms. Masoumeh Ebtekar, Iran's Vice-President and head of the Environment
Protection Organization (EPO) commented on the environmental problems in the Caspian Sea
and their impacts on the regional states.
Stressing that the Islamic Republic of Iran has been most affected by the Caspian Sea
pollution because of the density of its population along the Caspian coasts Ms. Ebtekar
said that Iran agrees with the implementation of any project for the development of trade
among the regional states on the basis of Caspian Sea resources, provided that interests
of the littoral states and those of future generations are preserved.
She termed the collective coopration of the regional states in the settlement of present
disputes as "inevitable", and called for strict measures by the five littoral
states in neutralizing environmental risks threatening the region.
Underlining the need for the application of environmental measures in the implementation
of industrial projects, Ebtekar said that the EPO believes that any step towards
exploration, exploitation and transfer of oil in the Caspian Sea region will fail to be
beneficial to the littoral states in the absence of environmental considerations.
Therefore, while taking the principle of productivity into consideration, the transparency
of the Caspian Sea legal regime and the extent of exploitation of the marine resources
should be among the first steps to be taken by the regional states.
Another speaker at the first day of the Conference, Turkmenistan Oil Minister Rajab
Arazov, said his country is committed to the transfer of its oil and gas through Iran,
adding that Turkmenistan considers Iran as the most important route for the transfer of
its oil and gas to international markets. He said that the Turkmenistan-Iran-Turkey gas
pipeline is one of the key projects for the transfer of Turkmen gas to Europe, adding that
negotiations are underway with a number of foreign companies in this connection. He said
that Turkmenistan is also carrying out a pipeline project for the transfer of oil via
Iran, and expressed the hope that 250,000 barrels of oil will be transferred to world
markets through the pipeline. The Minister further added that given the rich resources of
the Caspian Sea, the Turkmenistan President supports the project for the laying of an
inter-continental pipeline for the transfer of oil and gas. He also underlined his
country's commitment to observing environmental regulations in the Caspian Sea.
Addressing the conference, Georki Tikhonov, chairman of the Commonwealth of Independant
States (CIS) committee in the Russian Federation, called for the formation of a joint
committee comprising the five littoral states in an effort to formulate the legal regime
of the Caspian Sea. He listed the main issues in the Caspian Sea as the joint exploitation
of marine reserves, free transportation, and the preservation of biological resources. He
also called for the formation of a company with the participation of all littoral states
for the exploitation of the marine resources in the Caspian Sea. Stressing that
exploitation of specific resource should by no means damage other resources, Tikhonov
expressed hope that cooperation among littoral countries would prepare the grounds for the
further consolidation and development of the Caspian neighbors.
Also addressing the gathering, Iran's Deputy Energy Minister Hamid Chitchian said that
lack of proper attention for economic considerations and taking long and at times unsafe
routes for delivery of oil and gas from the Caspian Sea, will further increase costs of
transfer and will affect trade competition in the region. Such a drop in income will
dampen interests of the oil and gas exporters in the region, and also affect investments
of oil companies as well as those of oil consumers. He then referred to the present and
proposed oil and gas pipelines in the Caspian Sea, including northern, western, eastern,
southeastern, and southern routes, as well as the seabed.
Elaborating on each route, and their geopolitical, security, and economic importance, and
their underlying problems, Chitchian said that the southern route is best, which goes
through a single country-Iran. From a theoretical point of view, Iran is the best and most
reasonable route because passage through it means access to the Persian Gulf and,
eventually, to the world market.
The official further added that Iran could transfer oil and gas to international markets
either through swapping, or a pipeline, connected to terminals in the Persian Gulf. He
said in swap schemes, not only Caspian oil will be transferred in the shortest possible
period of time, but also the need for massive investments for laying the pipelines will be
removed. In addition to swap schemes, Iran, Turkmenistan and Kazakhstan can also cooperate
in the area of gas export to international markets, while other gas producers in the
Persian Gulf can join the network.
Iranian Deputy Foreign Minister for Economic Affairs Mahmoud Vaezi told the participants
at the conference that the next century is an era for the optimum utilization of
opportunities and relative advantages. He said that the identification of relative
advantages, and employment of suitable cooperative mechanisms, can prepare the grounds for
the countries' progress while upgrading national welfare standards. Criticizing the
difference of opinion over the legal regime of the Caspian Sea, Vaezi said that as long as
the legal regime of the sea remains ambiguous and uncertain, foreign partners will show
reluctance in making huge investments in the region. Pointing to the oil price slump in
the past year, and uncertainty in economic justification of projects, he said that losing
exploration opportunities, rising exploitation expenses, and low income are heavy cost
which must be paid for the lack of coordination and the proper understanding of
political-economic situations. In conclusion, he hoped that mutual trust, and the
proximity of views among littoral states would safeguard their collective interests.
On the second day of the conference, Iranian Foreign Minister Kamal Kharrazi's message was
read in which, he underlined Iran's readiness to purchase 1.5 million barrels of oil and
200 million cubic meters of gas per day for its domestic consumption. He stressed that the
Islamic Republic of Iran is the best trade partner in any project for the exploitation of
the Caspian Sea resources. Therefore, the message read, the only reasonable route for the
export of oil and gas from the littoral states can be through the pipeline via Iran and
its transfer to the Iranian ports. Pointing to the issue of the legal regime for the
Caspian Sea, Kharrazi announced Iran's readiness for cooperation in an effort to forge a
general consensus for the determination of the Caspian Sea legal regime.
Kharrazi stressed in his message that the responsibility of the littoral states towards
the Caspian Sea is not confined to a certain period of time, rather grounds should be
prepared in a way to allow future generations to take advantage of the regional potentials
in peace and stability.
In the continuation of the second day sessions, Kazakh Deputy Energy Minister Dosayev
Yevbolat said that his country is studying the privatization of oil and gas industry. He
said that preliminary steps have been taken for transfer of oil and gas through
Turkmenistan, adding that steps have also been taken for the signing of a swap agreement
with Iran. He also said that his government has not abandoned the option of the southern
routes which transfer oil through Iran, adding that in order to boost its potentials for
the export of oil to international markets, Kazakhstan is decided to develop Octav port in
the northern Caspian Sea.
The next speaker, Iranian Deputy Oil Minister Ali Majedi discussed the comparative study
on different ways of transferring crude oil from the Caspian Sea. Elaborating on the
future situation of oil transfer in the region, he pointed to the western, eastern and
southern routes and said that given the length and cost of the routes, all potentials
should be employed to minimize costs while simultaneously boost transfer through the
increase in production.
However, Majedi said, given that investment in projects for transfer of oil should
coincide with the gradual increase in the production of oil in the Caspian Sea, Iran has
planned for the implementation of a transfer project in three stages through the
utilization of its pipelines and refineries in northern part of the country.
The first stage consists of being oil carried to Neka port, in northern Iran, oil tankers
from ports in Kazakhstan, Turkmenistan and Azerbaijan, and then transferred to Tehran
refinery through a 390 km pipeline. The oil delivered to Iran will be consumed
domestically and swapped at oil terminals in the Persian Gulf. The total cost of the
project is estimated to be around 400 million dollars, implementation of which, would
transfer 350,000 barrels of oil every day. The project will be implemented within two
years. In the second stage, crude oil will be transferred to Tehran refinery through
tankers or pipeline from west or east of the Caspian Sea, and by reversing Tehran-Isfahan
and Tehran-Arak pipelines, 450,000 barrels of Caspian Sea oil will be refined and consumed
domestically, while the equivalent amount will be swapped in the Persian Gulf. The second
phase will cost between 300 to 500 million dollars. The third stage deals with the direct
transfer of oil from the Caspian Sea for which preliminary studies have been started.
However, due to the absence of sound estimates of the Caspian oil export statistics, more
time is needed for making the final decision.
The next speaker, Rasem Dadashov of the Republic of Azerbaijan, announced that soon
onshore and offshore exploitations in the Republic would amount to 50 to 60 million tons
of crude annually. He underlined the need for laying oil pipelines in different directions
and said that although such a measure cannot reduce the political-economic dependence of
one country over another, it can be a factor in reducing possible risks. The Azeri
official further added that pipeline talks initated in 1992 by Iran, Azerbaijan and
Ukraine, are going through their final stages which will provide the three countries with
the opportunity to form an independent oil and gas company.
Hussein Kazempour Ardebili, an advisor to the Iranian Oil Minister, delivered a speech on
the legal regime of the Caspian Sea and its impact on regional energy security. Pointing
to the fact that the Caspian Sea is a landlocked sea, he said that since 1994, the five
littoral states have held talks, either bilaterally or collectively, on the formulation of
a legal regime for the sea, but each time failed to obtain a result. He said that the
geographical features of the sea and its rich biological resources call for the protection
of its environment, Thus, laying a pipeline at the seabed is not a reasonable measure.
Stressing the need for the preservation of the independence of the littoral states,
Kazempour Ardebili said that the collective cooperation of the Caspian Sea neighbors is
important, not only for the entire region, but for our security as well.
Views expressed by Iranian and foreign experts
I- Security, financial facilities and investment
opportunities in the Caspian Sea oil and gas
- Presenting his article titled "Energy Security in the
Caspian Sea and Central Asia" to the conference, President of the APS energy group,
Pierre Shammas said that energy security has often been ignored in this region, adding
that some of the newly independent Central Asian Republics pay the least among of
attention to the issue of security in international cooperation. while argueing that the
oil prices slumps will continue for another two years, shammas predicted that major oil
companies will still implement new oil projects in the region. He said major oil companies
have taken advantage of giant oil resources in the world for more than a century, adding
that their policymakers are also optimistic about future decades. Therefore, they have
expressed willingness to make investment in the Caspian oil and gas industry despite
differences in their interpretation of energy security with that of the local governments.
To this end, sooner or later, oil companies and local governments should reach a unified
policy for the establishment of security.
- Robert Cutler, a lecturer from Carleton University of
Canada, who presented an article titled "Finance Issues in Eurasian Energy
Development", said that the issue of investment in the Caspian Sea energy sector is
similar to the investment condition in the 19th Century known as the "great
game". He said in the Caspian Sea project, the number of players are much more and
the objective of investment instead of being the domination over a certain region in the
19th Century, is now gaining access to the income obtained from the rich energy resources
of the sea. However, he added, participation in energy projects in the Caspian Sea does
not result in just a simple investment, rather, it has more sophisticated dimensions which
should be taken into consideration. He pointed to the following examples:
- Expectations of the countries along the route of the
pipeline in return for cooperation in the establishment of a security arrangement;
- Oil consortiums usually prefer to carry out exploration
and exploitation operations, and transit and delivery of oil to international markets, as
independent projects implemented stage by stage. But, statesmen view such programs as
macro planning which should be carried out as a single project.
- Laying pipeline is not considered as investment but is
rather the cost of oil transfer to the consumer market, therefore, it should be
economical.
- The successful implementation of the said projects
requires international cooperation with the participation of the private sector.
Obviously, investors are sensitive to the market situation and changes in the price of
oil, while the host country is only concerned about the transfer charges. Therefore,
further oil price slumps will adversely affect motives of the investors to the extent that
it might force them to withdraw the project.
- How will the revenues obtained through the project be
divided among the countries concerned? If the income is spent equally in the region it
will be effective in the political-economic development of the countries of the region.
But, if misused by a certain group of people, it will give rise to the possibility of
political confrontations and regional disputes. Therefore, creating a balance among
regional powers is an essential task.
The Caspian Sea is a common inheritance of neighboring countries.
II- Caspian Sea oil and gas, and
its relation to political-economic development
- Ms. Elaheh Koolaee, a lecturer of Political Science at
Tehran University, in her article titled "Long Term Economic Development Prospects of
the Central Asian States" said that the collapse of the Soviet Union confronted the
independent states in Central Asia, as well Russia and the Caspian Sea littoral states,
with major economic issues. Therefore, the dissolution of the economic bottlenecks
inherited from the former Soviet era calls for careful attention to the issue of oil and
gas because the exploitation and transfer of oil from the Caspian Sea has become an
effective leverage to offset the present economic crisis. She underlined the
politicization of economic issues in the Third World as the main problem of the
contemporary era, and said that despite economic reasoning, political priorities dominate
economic considerations which culminate in the emergence of major developments in the
Caspian Sea and routes for transfer of its resources to the world markets.
- Masoud Darakhshan, director of International Bureau for
Energy Studies (IBES) in Britain, said that proven oil and gas reserves in the Caspian
region and Uzbekistan are around 1.7 percent and 5.2 percent of the total world reserves,
respectively. This is while Kuwait's oil reserves are six times more than the Caspian oil
reserves, and Iran's proven gas reserves are 30 times more than the Caspian gas reserves.
Therefore, the question that comes to mind is why oil and gas in the Caspian Sea is so
important? The geopolitics of the Caspian Sea is one of the main reasons for the fierce
rivalry in the development of resources in the region, he opined, adding that all issues
and figures point to one reality, the contradiction between economic principles and
political issues. Creation of a balance in this connection is costly and it is not clear
who should pay the cost, Darakhshan said. The U.S. is trying to employ all its potentials
to create such a balance, which is difficult to realize. However, while regional countries
believe that more oil income will guarantee a better future for them, the U.S. still
believes that it is the superpower in the world.
- Sohrab Shamir of the international Enviormental and
Infrastructure International Ltd (E & I), said in an article that world rivalry over
exploitation of giant oil and gas resources might jeopardize regional stability and
security and push the region towards military confrontation. He said that only sound
exploitation and optimum utilization of the resources will guarantee stability and
political-economic safety in the region. Therefore, the proper cooperation of regional
countries in the development of the existing potentials, far from foreign interference,
can be effective in the elimination of political confrontations and crisis.
- Saeed Ahadifar, in an article titled "Consequences of
Central Asia and Caucasian Oil Supply into International Markets" said that the oil
price slump in 1998, and the subsequent growth in international trade which resulted in an
increased demand for oil, coincided with the exploration of outstanding amounts of oil in
CIS which possess 5.5 percent of the total proven gas reserves in the world.
- Daniel C. Matuszewski of the American company
International Research and Exchanges Board (IREX), said that on the threshold of the 21st
century, historical risks are threatening world nations, adding that the study of
different cultural structures in forging economic cooperation is significant. He urged the
Central Asian Republics, which are in the process of forming regional cooperation, not to
ignore their historical and cultural backgrounds. Otherwise, he cautioned, in the absence
of cultural links and mutual understanding, economic cooperation will be faced with
difficulty.
- Shahriar Hendi of the Iranian Energy Ministry pointed to
the role that Iran plays in the transit of energy, and underlined Iran's unique
geographical and political situation in the world. However, he said, Iran should reform
its foreign policy in three categories: First the coordination of its local and foreign
policies, second the consolidation of regional cooperation instead of deterrent rivalry,
and third the confrontation with Washington's economic sanctions.
III- Caspian Sea
environmental issues
Gary Santini of E & I told the conference that exploration and exploitation operations
in the Caspian Sea causes environmental pollution in the region. He said that a large
number of cities and industrial units surrounding the Caspian Sea, let their wastes flow
into the sea, while several polluted rivers also join the sea. But, he added, the optimum
utilization of resources would lessen the Caspian pollution to 80 percent.
- Another speaker, Ali Ganji-Doust of the urban development
engineering group of the Teachers' Training University, told the gathering that in an
effort to reduce Caspian Sea pollution, pollutant sources should be identified, the degree
of pollution should be specified, impacts of the pollution on the Caspian Sea environment
should be diagnosed, and the degree of oil pollution should be estimated.
- Afshin Daneshkar, a researcher at EPO, told the gathering
that the most recent measure in connection with environmental agreement among the Caspian
Sea littoral states was the step taken by the World Bank with the cooperation of relevant
international bodies in 1995. The measure resulted in the formulation of the Caspian
Environmental Program (CEP) on the basis of which, each littoral state was commissioned to
study a certain aspect of the Caspian Sea environment. Experience of the past shows that
the five littoral states should avoid unilateral measures but should rather forge a
collective cooperation, and a general consensus, for the preservation of the Caspian
environment as a prerequisite for lasting development in the region.
IV- Transfer of Caspian oil
and gas
Abbas Maleki, head of the Institute for Caspian Sea studies, offered an article on
"Tensions Influencing the Routes of Oil and Gas Pipeline in the Caspian Region".
He said that the political influence of oil in this part of the world is far beyond its
effectiveness as a commodity, adding that by making a comparison it can be concluded to
some extent, its responsible for instability and tension in the region.
- Manouchehr Vaziri of Sharif Technical University refered
to the swap of oil delivered to Iran in its northern ports, with the oil transferred
through the Persian Gulf, and said Iran's cooperation in the transfer of oil and gas in
the region is highly important. He said that the implementation of the project depends on
the consensus of the regional countries, adding that the refusal of a single littoral
state will delay the realization of the project.
- At the conclusion of this report, let us recall Foreign
Minister Kamal Kharrazi's remarks at the foreign ministerial session of the Economic
Cooperation Organization where he reminded member countries that the Caspian Sea is a
common heritage of the littoral states, and any use of its marine resources should only be
within the framework of specified regulations and upon the consensus of all the littoral
states. Realization of this objective requires the formulation of acoherent legal regime
for the Caspian Sea, for which the Islamic Republic of Iran has voiced readiness.
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