WORLD FINANCIAL CRISIS MADE AZERBAIJAN’S FUTURE RATHER VAGUE

PanARMENIAN.Net
10.12.2008 16:09 GMT+04:00

/PanARMENIAN.Net/ The Caspian oil and gas makes 4 per cent and 7 per
cent of the world resources respectively, what is undoubtedly not
enough to boast a glut of wealth, a French expert said.

"Two thirds of the oil world resources are concentrated in the
Middle East, a high-risk zone. As to Azerbaijan, it has 7 billion
barrels. To compare, Turkmenistan has 1 billion while Kazakhstan has
40 million. So, any oil pipeline from the Caspian region to Europe
is non-remunerative without Kazakh oil. Furthermore, Kazakhstan
can choose routes. Kazakh pipelines can stretch to Russian, China,
Persian Gulf and finally to Baku," Petros Terzian, head of Paris-based
strategic research foundation, said in Yerevan on Tuesday.

"The oil fields in Azeri, Shirag and Gyuneshli will be exhausted
in some 10 years. Moreover, after the status of the Caspian Sea is
determined, investments in oil extraction will become unprofitable,"
he said.

Mr. Terzian reminded that Azerbaijan’s current oil income is equal
to the republic’s state debt.

"Baku can make a breakthrough with $100 for a barrel, what is,
however, hardly probable for near-term outlook. The world financial
crisis made Azerbaijan’s future rather vague," he said.