Kristine Margvelashvili

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Caspian Energy Resources and it's importance for
the Black Sea Region

• Kristine Margvelashvili
• MA student at International Hellenic University
• Black Sea Cultural Studies (Politics and Economy
  Stream) Erasmus Mundus Program

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Introduction

• Riparian States Azerbaijan, Iran, Kazakhstan,
  Russia, Turkmenistan.
• Main actors in the Region USA, EU, Russia, China
• Oil production started in the Baku area at 1848
• The development of Absheron peninsula oil mining
  is linked with Nobel brothers from Sweden who
  came and settled in Baku in 1873

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• Caspian Energy reserves is predicted to
  constitute nearly 3-4 of worlds proven
  reserves
• As about power sharing in the region Azerbaijan
  and Turkmenistan posses biggest part of reserves
  while trying to combat with Russian still
  engrained political domination
• Black Sea as a path to Caspian oil is in the
  focus of EU, USA while itself the Caspian Region
  became active after 9/11 and war in Afghanistan
  and Iraq
• Eurasianism Theory which considers Russian and
  Central Asian people close to each other
  culturally thus foreseen Russia as a leader
  amongst them

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Caspian Region Energy Capabilities-Oil

• Proven oil reserves Azerbaijan estimated is 7.0
  thousand Million Barrels, in Kazakhstan 39.8
  thousand MB in Turkmenistan 0.6 for Iran its
  137.0 thousand MB. Russia - 77.4 MB
• Production in Azerbaijan is 1037 thousand of
  barrels daily which is 1.3 share of total world
  production, for Russia its 10 270 and its 12.9
  of total. Kazakhstan is producing 1757 thousand
  barrels daily, Turkmenistan 216 and Iran 4245
  which is 5.2 of total
• Upward trends although less than Middle East and
  necessity of more investment in the field

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Caspian Region Energy Capabilities-Natural Gas

• Azerbaijans proven gas reserve at the end of
  2000 year was 1.2 trillion cubic meters and in
  2010- 1.3 trillion cubic meters. Kazakhstans
  share are bit bigger 1.8 in 2010, Turkmenistan
  possess 8.0 trillion cubic meter proven reserves.
  Iran 29.6 from which 11 trillion cubic meters is
  located on Caspian Sea
• Production Azerbaijan produces 15.1 billion
  cubic meters . Kazakhstan. 33.3 and Turkmenistan
  42.2, Iran 138.5 cubic meters

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Main Transit Routes and Pipelines

• Caspian Pipeline Consortium Project (CPC)
  connects Tengiz field reserves to Russian Black
  Sea port Novorossiysk
• Baku-Tbilisi-Ceyhan oil pipeline (BTC) It runs
  from Azeri-Chirag-Guneshli oil field till the
  Ceyhan port in Mediterranean Sea
• The Azerbaijani-Turkish Trans-Anatolia gas
  pipeline project (TANAP), officially launched on
  June 26 is impacting a vast field ranging from
  Turkmenistan, across the South Caucasus and
  Turkey, to Central Europe and EU authorities in
  Brussels.
• The 3300 kilometers long Nabucco pipeline will go
  from Azerbaijan (Shah Deniz field), Egypt, Iraq
  and Turkmenistan through Turkey, Bulgaria,
  Romania and Hungary to Austria-Nabucco-West
  (28June)

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Main Arguments-Conclusion

• Caspian Energy resources are tentatively
  important for Black Sea energy security
  feasibility of transit capacity due to its role
  in the development of Southern Gas Corridor
• Legal issues about access over fishing, mineral
  resources and waters of the Caspian Sea Basin is
  important obstacle on the way of exploring Gas
  and Oil reserves and it needs to be overcome
  through the negotiation
• The most likely scenario for bringing Caspian Sea
  gas to Europe will be the construction of
  multiple interconnected pipelines, each owned and
  financed separately, rather than one single
  pipeline project

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Thank you for attention!

• Kristine Margvelashvili