In what have been some of the worst clashes between Armenia and Azerbaijan in years, sixteen soldiers and one civilian were killed in the last two weeks. Armenia has threatened to bomb an Azerbaijani reservoir. Azerbaijan has threatened to destroy an Armenian nuclear plant. These may be empty threats, but they speak to the level of tension between the two countries.
What exactly happened, why, and what is the likely outcome? (more…)
After four years of construction, the Trans-Anatolian Natural Gas Pipeline (TANAP) has started pumping gas into Europe.
TANAP is part of Europe’s Southern Gas Corridor, connecting the South Caucasus Pipeline (completed) with the Trans-Adriatic Pipeline (still under construction). It aims to transport natural gas from Azerbaijan all the way through to Italy, where it flows into the European market.
Once the system is fully operational, it should be able to pipe 16 billion cubic meters of natural gas into Europe per year. (more…)
The ink dried in 1994 on the “deal of the century” between Azerbaijan, BP and a number of Western oil companies. It paved the way for Azerbaijan to become one of the world’s most pivotal oil and gas exporters under the direction of the State Oil Company of the Azerbaijan Republic (SOCAR).
But in a new century, even hydrocarbon rich Azerbaijan must begin considering ways to diversify its energy portfolio. Furthermore, developing alternative sources of energy within Azerbaijan would leave more natural gas for export and help diversify the Azerbaijani economy.
A Chinese proverb notes, “A partnership is like a marriage; you sleep in the same bed but have different dreams.” Still there is no doubting the significance of the oil deal signed that September 1994. Azerbaijan was recovering from a disastrous war with Armenia in which up to one million Azeris from Armenia and the Karabakh region were displaced and major damage had been sustained to Azerbaijan’s economy. At the time the Caucasus was a forgotten region on the world map, a mere byproduct of the dissolution of the Cold War. But for international oil companies, the region was not without opportunities nor its political risks. (more…)
