Known as an active area for those engaged in the oil and gas industries, the Caspian Sea is sought after by companies in search for energy sources.
The sea has been divided by the many different countries within the vicinity such as Azerbaijan, Iran, Kazakhstan, Russia, and Turkmenistan. Development within the sea causes difficulties and costly because of the infrastructure that must be erected to produce, process, and transport the oils and gases that is compounded by the cold weather.
However, the year 2010 saw one large development take place within the Caspian Sea and that was the Kashagan project by those from Kazakhstan. First discovered in 2000, the discovery was estimated to yield an astounding 11 million barrels of recoverable reserves. The project was developed by an association of international oil companies that include Eni, who mains the project, Exxon Mobile, Royal Dutch Shell, Total, and Conoco Phillips. It is said that the association has spent around $30 billion for the field development.
Companies soon began following and started increasing their exposure to the Caspian Sea. Among the companies that began increasing their exposure is BP, which operates the Azeri-Chirag-Gunashli field development that is within the Azerbaijan hold of the Caspian Sea. Other interested operators include Chevron, Exxon Mobile, Hess Corporation, and Statoil.
Astonishingly, the Azeri controlled field alone produces around 850, 000 barrels day. In addition, BP awarded around $815 million in contracts last 2010 to various service companies to aid in the development of the field.
Conoco Phillips is considering the prospect of exploring the Turkmenistan hold of the Caspian Sea for oil and gas. Iran, who is also in search for oils and gases, began drilling for its first exploration in early 2010.
The resources offered by the Caspian Sea provide great promise to supply energy that will in turn satisfy the ever increasing demands of the world’s economies. However this can only be achieved through a combination of exerted effort and expenses.