The Energy Competition in the Caspian: Can Iran Maintain Its Share?
According to Sea News, Kazakhstan’s national oil and gas company, KazMunayGas, plans to begin drilling in Turkmenistan’s section of the Caspian Sea for the first time using the floating drilling rig “Satti.” This rig, which is the first offshore drilling rig built in Kazakhstan, is set to be deployed in the Chalken oil field. The contract for this project was signed between KazMunayGas and the Emirati company Dragon Oil, and the commencement of this operation could have significant implications for the regional energy market.
At the international conference “Oil and Gas of Turkmenistan,” Askhat Khassenov, chairman of the board of KazMunayGas, announced that this project represents a new beginning for energy cooperation in the Caspian. The Satti rig, with its impressive dimensions of 72 meters in length, 64 meters in width, and 119 meters in height, symbolizes Kazakhstan’s capabilities in the construction and development of drilling equipment. According to him, a new office of KazMunayGas has been established in Ashgabat to strengthen technical and operational cooperation.
Stronger Competition in the Energy Market
Simultaneously, Kazakhstan’s national gas company, QazaqGaz, has also signed a strategic cooperation agreement with Turkmenistan’s national gas company, Turkmengaz. This agreement, aimed at developing Turkmenistan’s gas fields, including the vast Galkynysh field, also includes gas transmission projects. Among these projects is the TAPI pipeline (Turkmenistan-Afghanistan-Pakistan-India), which could potentially replace Iran’s energy routes.
Given Kazakhstan and Turkmenistan’s collaborations with major gas-buying countries, especially China and Russia, Iran may face challenges in its export markets.
The Future of Iran’s Competition in the Caspian
These collaborations are forming as Iran strives to improve its infrastructure for harnessing resources in the Caspian Sea. However, due to international sanctions and technical challenges, Iran has yet to effectively compete in the Caspian energy extraction and export sectors. This situation could lead to a reduction in Iran’s market share in the energy sector and limit its opportunities.
To compete in these areas, Iran must take strategic steps to strengthen its position in the field. Declining export opportunities and delays in infrastructure development are serious threats to Iran’s energy industry, which the new government must address.
Source: CASPIAN NEWS
