This article critically examines the shortcomings of the offshore industry regulation in the Caspian Sea and proposes a framework to strengthen it. It considers the hydrocarbon industry and resources of the Caspian Sea region and analyses the extent and impacts of Caspian offshore oil and gas activities on its environment, reviews selected regional and global regulatory frameworks for the offshore oil and gas industry and their effectiveness, discusses existing shortcomings of the national and regional regulation of the Caspian offshore oil and gas industry, and provides suggestions on how it could be improved, drawing on the experience and regulatory formulations from other regions of the world.
Between 1991 and2009Azerbaijan and Kazakhstan entered into 27 and 24 production-sharing agreements (psas) to develop oil and gas fields respectively. Bahgat (n 45) at 135–146.
In November2012the Regulation was changed into a Directive due to political and industry pressure meaning that it will be left up to states to implement the provisions of the Directive in domestic law thus arguably lessening the regulatory strength of the instrument. The original proposal would have established a regulation directly binding eu Member States. P. Dittrick ‘eu Reaches Preliminary Agreement on Offshore Oil Gas Safety Directive’ 21 February 2013 Oil and Gas Journal available at http://www.ogj.com/articles/2013/02/eu-reaches-preliminary-agreement-on-offshore-oil--gas-safety-dir.html.