World financial crisis made Azerbaijan's future rather vague

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.