Iran Strikes Oil in the Caspian Sea
Iran has found oil reserves in the Caspian Sea – the first new reserve there in over 100 years. Test drilling for natural gas in the region discovered the crude oil reserve, which could be as large as 10 billion barrels.
This is a substantial find by the National Iranian Oil Company. Iran’s total reserves are currently at 150 billion barrels so this is a significant find. but is having a lot of trouble getting their oil exported due to international sanctions over their covert nuclear weapons program. So despite being the 2nd largest producer in OPEC – the Organization of Petroleum Exporting Countries – Iran’s exports are shrinking. This decline is made worse by growing number of large foreign oil corporations leaving Iran in compliance with the sanctions.
The Caspian Sea is thought to hold reserves of up to 33 billion barrels, as opposed to the North Sea’s 17 billion barrels. Kazakhstan will begin oil production at the Kashagan reserve in the northern Caspian Sea in 2013. The Kashagan oil field is estimated to be the world’s 5th largest, and will be run by Shell, Total, Eni, and Exxon Mobil.
Azerbaijan is also active in the Caspian Sea, with partner BP operating the Azeri-Chirag-Guneshli project – currently the largest oil development in the region.
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