After the collapse of the Soviet Union and the formation of independent states in the Caspian Sea basin, the oil and gas landscape of the region changed and the region's hydrocarbon resources gradually became effective players in the global energy market. But in 2000, disputes between Turkmenistan and Azerbaijan over energy resources intensified. In 2009, Turkmenistan threatened to sue Azerbaijan in an international court. In 2012, the Caspian Sea witnessed a confrontation between the two countries over energy resources. (Photo quoted by Caspian news’s website)

Therefore, the seismic operation by the Turkmen ship was stopped due the threat of Azerbaijan. However, relations between the two countries continued to be strained in the following years, until the two countries agreed to sign an agreement to refrain from exploring the disputed areas until the issue of dividing the Caspian Sea was clarified.

In fact, apart from Azerbaijan's oil, Turkmenistan, with its rich oil and gas resources, is one of the main holders of world gas reserves.

In recent decades, the Turkmen government has used virtually all available capacities to attract foreign investment and cooperate with major oil and gas companies, with increasing investments in the hydrocarbon sector of the sea. In addition, the country's foreign policy has moved away from absolute neutrality.

In other words, Turkmenistan's foreign policy has been influenced by the country's gas and energy resources in pursuit of its regional goals and interests. In the meantime, reducing tensions with Azerbaijan has been considered, as if Turkmenistan and Azerbaijan have been strategic partners since August 2017.

The Joint Mutual Development Statement has paid attention to three areas: 1. Cooperation. 2. The potential of transportation and transportation and 3. The energy sector. In fact, the two countries of Turkmenistan and the Republic of Azerbaijan in the their Declaration of Strategic Partnership, have emphasized on mutual investment, further expansion of mutually beneficial trade and economic cooperation and the need for peaceful settlement of disputes in accordance with international law, further development and implementation of joint energy projects to ensure energy security, supporting important trans-Caspian transport projects, the development of the transit potential of the two countries and the establishment of more cooperation in energy.

Following the controversy over this large hydrocarbon field, now called "Friendship", its development was not possible for years.

But with the two countries resolving their differences in recent months, they also managed to resolve their differences over ownership of the Dostliq (Friendship) oil field by signing a joint trade agreement. It is scheduled that 60 million tons of oil and 100 billion cubic meters of gas to be jointly exploited by the two countries of the Caspian Sea basin. This important agreement between the two countries was signed by their Foreign Ministers.

In fact, energy cooperation between Turkmenistan and the Republic of Azerbaijan has been developing rapidly in recent years. The two countries, with significant reserves of hydrocarbon resources, are seeking diversification of energy supply routes.

In addition, the geographical location of the two countries in the Caspian Sea and the move from tension to cooperation and convergence has increased the potential for cooperation between Ashgabat and Baku in the energy sector, the development of offshore projects and oil and gas pipeline infrastructure.

In the meantime, the Republic of Azerbaijan can increase its interactions with Turkmenistan to supply the natural gas needed for export to the European Union through the Top and Tanap pipelines.

Under these circumstances, with the signing of the Convention on the Legal Status of the Caspian Sea by Iran, the Republic of Azerbaijan, Kazakhstan, Russia and Turkmenistan, the increase of gas production in Turkmenistan in 2020, the passage of Azerbaijan and Turkmenistan from the dispute over the division of the Caspian Sea, construction of the Caspian Sea gas pipeline, Turkmenistan's participation in gas exports to Europe and the redesign of the Trans-Caspian gas pipeline have received more attention.

Farzad Ramezani Bonesh

Senior Researcher and Analyst of International Affairs