Iran claims ownership of Araz-Alov-Sharg

On July 21, Iran’s deputy foreign minister Ali Ahani forwarded a sharp protest note to an Azeri embassy representative, which says that Iran will not allow any foreign country or company to infringe upon its rights and national interests in the Caspian. This report has been released by the Union of Integral Azerbaijan, which quotes French international radio.

Iran believes the agreement Azerbaijan has signed with foreign companies over Albors prospect (Iranian name of Araz-Alov-Sharg) has no legal effect, while Iran’s oil ministry threatens to block the activity of foreign companies on the prospect as it claims ownership rights for 20% of the Caspian water basin in question.

SOCAR told AssA-Irada Monday that the agreement on the mentioned prospect was signed 3 years ago and ratified by the Azerbaijan parliament in March 1999. The source went on to say that if the Caspian were to be divided with a median line the field would be in the Azerbaijan sector.

A source from BP, project operator, has said that foreign companies have signed a contract with the Azerbaijan government and the issue is no longer a concern for the company, as it is for the state. Deepwater research is already underway on the prospect.

The same dispute underlies the delaying ratification by the Azerbaijan parliament of the agreement on Lerik-Daniz signed in April 1999.*