105
this struck a blow for the region in 2011. It urged Iran to revive and strengthen the
network swap—to much benefit in terms of fuel savings and transport costs.
However, in 2011, the government believed that the swap rate was too low and
should be increased. The National Iranian Oil Company wanted to increase the figure from $8 to $40 per metric ton—or by up to around a fifth (www.iran- newspaper.
com, 2016).
As of August 2011 however due to the low rate of false swaps, the scheme was
halted. Iran received a fine at the Hague and joint projects were withdrawn, but the
Caspian oil recycling raised $97 million and although the courts are dealing with the
complaint, the Petroleum Ministry aimed to pay compensation to reduce the minimum amount required in payment according to the latest statistics good company
material benefits crude oil swaps, discuss strategic and security issues in the region
that need to be special attention (www.iran- newspaper.com 2016).
The containment policies of various American administrations have formed a
constant barrier for the development of energy transit projects through what would
otherwise be the most logical means of breaking Russia’s dominance of pipeline
politics throughout Eurasia. Kazakhstan and Turkmenistan have also felt the brunt
of this and would prefer to export oil and gas to Iranian energy infrastructure. But
US sanctions have made it impossible to access the required international financing
and planned Iranian-Turkmen joint ventures have been cut back so as to yield few
benefits (Bluth 2014:63).
As Martha Brill Olcott states, “Iran’s section of the Caspian does not promise
substantial new revenues and Iran’s best hope to benefit from new oil and gas and
developments in the Caspian is through energy transit” (Bluth 2014:63).
Caspian Sea Countries Cooperation
Cooperation between Caspian Sea states can no doubt help to preserve stability and
security for all in the region. Issues arising specifically from the extraction and
exploration of hydrocarbon resources of the Caspian Sea could thus be resolved
most effectively by a regional cooperation organization. This idea was first proposed by Iran’s President Rafsanjani at the first meeting held in Tehran in February
1992, which sought to establish the Caspian Sea Countries Cooperation group
(Kolai 2016:139). Since 1992, four Caspian Sea Countries Cooperation summits
have been held. The second and third summits ended in the 2010 signing of a
“Security Cooperation Document” proposed by Azerbaijan, which allowed for
naval security cooperation in the sea. The fourth summit, held in Russia, meanwhile
lead to some important decisions on environmental cooperation. Major factor in the
leader’s negotiation was about Caspian Sea Legal Status (Kolai 2016:139).
Regional Security and Economic Organization and Projects
this struck a blow for the region in 2011. It urged Iran to revive and strengthen the
network swap—to much benefit in terms of fuel savings and transport costs.
However, in 2011, the government believed that the swap rate was too low and
should be increased. The National Iranian Oil Company wanted to increase the figure from $8 to $40 per metric ton—or by up to around a fifth (www.iran- newspaper.
com, 2016).
As of August 2011 however due to the low rate of false swaps, the scheme was
halted. Iran received a fine at the Hague and joint projects were withdrawn, but the
Caspian oil recycling raised $97 million and although the courts are dealing with the
complaint, the Petroleum Ministry aimed to pay compensation to reduce the minimum amount required in payment according to the latest statistics good company
material benefits crude oil swaps, discuss strategic and security issues in the region
that need to be special attention (www.iran- newspaper.com 2016).
The containment policies of various American administrations have formed a
constant barrier for the development of energy transit projects through what would
otherwise be the most logical means of breaking Russia’s dominance of pipeline
politics throughout Eurasia. Kazakhstan and Turkmenistan have also felt the brunt
of this and would prefer to export oil and gas to Iranian energy infrastructure. But
US sanctions have made it impossible to access the required international financing
and planned Iranian-Turkmen joint ventures have been cut back so as to yield few
benefits (Bluth 2014:63).
As Martha Brill Olcott states, “Iran’s section of the Caspian does not promise
substantial new revenues and Iran’s best hope to benefit from new oil and gas and
developments in the Caspian is through energy transit” (Bluth 2014:63).
Caspian Sea Countries Cooperation
Cooperation between Caspian Sea states can no doubt help to preserve stability and
security for all in the region. Issues arising specifically from the extraction and
exploration of hydrocarbon resources of the Caspian Sea could thus be resolved
most effectively by a regional cooperation organization. This idea was first proposed by Iran’s President Rafsanjani at the first meeting held in Tehran in February
1992, which sought to establish the Caspian Sea Countries Cooperation group
(Kolai 2016:139). Since 1992, four Caspian Sea Countries Cooperation summits
have been held. The second and third summits ended in the 2010 signing of a
“Security Cooperation Document” proposed by Azerbaijan, which allowed for
naval security cooperation in the sea. The fourth summit, held in Russia, meanwhile
lead to some important decisions on environmental cooperation. Major factor in the
leader’s negotiation was about Caspian Sea Legal Status (Kolai 2016:139).
Regional Security and Economic Organization and Projects