Azernews.Az

By Kamila Aliyeva

Azerbaijan and Iran discussed cooperation in the energy sphere on the Caspian Sea.

Issues related to joint development of sea blocks in the Caspian Sea were discussed during the meeting of Azerbaijani Energy Minister Parviz Shahbazov and Iranian Oil Minister Bijan Namdar Zanganeh in Tehran, the Azerbaijani Energy Ministry reported on May 7.

The Azerbaijani delegation, headed by the minister, visited Tehran on May 6-7 to take part in the 23rd Iran International Oil, Gas, Refining and Petrochemical Exhibition (Iran Oil Show-2018).

The meeting noted that the National Iranian Oil Company (NİOC) is successfully participating in the projects of Shah Deniz and the South Caucasus Pipeline. This cooperation will reach a new stage with the launch of joint development of sea blocks in the Caspian Sea.

Shahbazov also held a meeting with Iranian Energy Minister Reza Ardakanian.

“The parties discussed the issues of energy exchange between the two countries, issues related to the construction of hydroelectric facilities Khudaferin and Giz Galasi, as well as Ordubad and Marazad HPPs. The meeting also discussed issues related to the creation of an energy corridor between Azerbaijan, Iran and Russia,” the ministry said.

The first meeting of the joint Azerbaijani-Iranian technical commission was also held to implement the agreement on the continuation of the construction of the Khudaferin hydroelectric facility and Giz Galasi hydro power plant on the Araz River and the joint use of energy and water resources.

During the meeting, issues of cooperation in this direction were discussed and forthcoming events were determined.

Addressing Iran Oil Show 2018 on May 8, Iran’s President Hassan Rouhani said that Iran is working with Azerbaijan on an oil reserve in the Caspian Sea, the first cooperation with a neighboring country, Trend reported.

Rouhani said that Iran and Azerbaijan are planning to cooperate and invest in an offshore reserve, which is a sample of Iran’s policy for constructive cooperation with the world.

He added that Iran may do similar cooperation with other neighboring countries including Turkmenistan.

“In many cases, we have common resources with our neighbors, and it is very important to accelerate investments in these fields,” the Iranian president said.

The announcement over the formation of a joint oil company between Iran and Azerbaijan was made by Amir Hossein Zamaninia, Iran’s deputy petroleum minister for international affairs and trading last month.

Zamaninia was quoted as saying that the company will be formed within the deal recently signed between the two parties.

Last March during a visit of Rouhani to Azerbaijan, the two countries signed "The Memorandum of Understanding on "Joint Development of Relevant Blocks in the Caspian Sea".

Elsewhere in his remarks Rouhani said that his administration is obliged to provide the required business space for the oil industry in Iran.

In Iran, oil has never been a mere economic issue and has been a political one, he added.

“Other industries are also valuable, but oil is special and has a significant impact on people's lives,” Rouhani said.

The recent visit of President Rouhani to Azerbaijan truly marked the beginning of a new era of cooperation between the Caspian states. The meeting of Azerbaijani President Ilham Aliyev and his Iranian counterpart largely focused on the opportunities for cooperation on the Caspian Sea.

The document, signed by Parviz Shahbazov and Bijan Namdar Zanganeh, is viewed as a turning point in ties between the two littoral states since it would allow to jointly make use of resources of the Caspian Sea. Previously, Baku and Tehran used to have serious disagreements regarding the delimitation of the Caspian Sea and joint energy cooperation.

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Kamila Aliyeva is AzerNews’ staff journalist, follow her on Twitter: @Kami_Aliyeva

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