Azernews.Az

By Sara Rajabova

Baku and Tehran have recently focused on the expansion of the oil cooperation between them.

The cooperation was reported to be based on expanding and exploring oil and gas fields in the Caspian Sea, rich with hydrocarbon recourses.

National Iranian Oil Company and Azerbaijan’s energy company SOCAR launched a new round of cooperation in the field of oil, Mehr news agency reported.

A delegation from Iran’s Khazar Exploration and Production Company, an affiliate to National Iranian Oil Company, held a meeting with the SOCAR officials.

Khoshbakht Yusifzade, the first vice-president of SOCAR said Iran and Azerbaijan can expand ties in the energy sector which can lead to developing bilateral economic relations.

Moreover, KEPCO’s director for exploration affairs, Yousef Etemadi explained that during the meeting Iranian specialists exchanged views with Azerbaijani colleagues, who have great experience in searching, exploring and developing offshore and onshore oil and gas fields, became familiar with technical and technological procedures conducted by them.

The Caspian Sea is rich in hydrocarbon resources and the littoral states of the sea have made great investment in developing oil fields in the region over the past years.

Iran has long been eyeing to expand its exploration activities in the Caspian Sea. The country seeks to use Azerbaijan’s experience as the country has engaged in oil and gas exploration in the Caspian Sea more than half a century.

Iran’s oil ministry has in recent years attached special significance to the development of oil fields in the Caspian Sea.

Ali Osooli, managing director of Khazar Exploration and Production Company earlier said attracting new investments especially by companies specializing in deep water exploitation can lead to boost in exploration activities in the Caspian Sea and the littoral provinces.

Iran has discovered oil in its Caspian Sea waters for the first time in more than a century in 2012. Iran discovered a new oil layer with in-place reserves of two billion barrels in Sardar-e Jangal oil and gas field off the shore of the northern Iranian province of Gilan in the Caspian Sea which contains quality crude that is toxic hydrogen sulfide-free.

The deposit was found at a depth of 2.5 kilometers (1.5 miles) during drilling on a natural-gas field and might contain 10 billion barrels of crude that is equal to seven percent of Iran’s known reserves, according to the reports.

Preliminary evaluations showed that Sardar-e Jangal field would produce some 8,000 barrels of oil per day and its gas reserves were estimated at 50 billion cubic feet - a quantity equivalent to Iran's total gas consumption over a 10-year period.

Iran is the second-largest oil producer in the Organization of Petroleum Exporting Countries, the country’s most existing fields are in the south and the Persian Gulf.

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Sara Rajabova is AzerNews’ staff journalist, follow her on Twitter: @SaraRajabova

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