BP to resume exploration of disputed Caspian oil fields

BP is the operator of the international consortium established for the exploration of these deposits. Work on these deposits was suspended on 23 July [2001] when Iranian navy ships and warplanes forced an Azerbaijani geological prospecting vessel to leave this area. Iran regards the Araz, Alov and Sarq deposits as "disputed". Official Tehran has repeatedly announced that it would prevent work at these deposits until the status of the Caspian is determined. After consultations with the British government, BP declared that if security was not guaranteed following the military incident in the Caspian, work would not resume. Woodward said that the consortium was not planning to wait for a political decision on the Araz, Alov and Sarq deposits and would continue work "in accordance with a timetable arranged in an agreement signed with the Azerbaijani government". BP's position seems to have changed radically and the company wants to put the issue, which led to a danger of military confrontation between Azerbaijan and Iran, on the agenda again. BP must have coordinated this decision with the Azerbaijani leadership. The interesting thing here is that this decision was announced only two days after a meeting between [Azerbaijani President] Heydar Aliyev and the Iranian ambassador to Azerbaijan. Despite this, BP's decision could be assessed as Baku's unexpected demarche to Iran. Now Iran has to choose between two options. Tehran should either follow its previous position, use military pressure and create a threat of military confrontation in the Caspian, or change its position and settle the problem through talks. The first option is not suitable for Iran in the current situation. Following the terrorist acts in the USA, the West pays serious attention to its security interests in the Caspian region, including Azerbaijan. If Iran repeatedly demonstrates its military strength in the Caspian, this will increase the possibility of its coming under serious pressure. The second option is unrealistic - if work resumes at the Araz, Alov and Sarq deposits, Iran will play a waiting game for a certain period of time.