BAKU, Azerbaijan, Sept. 18 (UPI) -- Iran is optimistic about the potential to expand its bilateral relationship with Azerbaijan in the energy sector, the Iranian ambassador to Baku said.
Muhammad Baghir Bahrami, the Iranian envoy to Baku, underscored Tehran's interest in examining future energy cooperation with Azerbaijan, he told the Trend news agency in Baku.
"We are optimistic about the future prospects of cooperation between our countries in the energy sector," he said.
He noted the National Iranian Gas Co. held a 10-percent stake in operations with Azerbaijan in the Shah Deniz gas field in the Caspian Sea, one of the larger gas fields in the world.
He went on to say a joint commission was moving ahead with the Baku-Astara natural gas pipeline. Iran would import more than 176 billion cubic feet of gas per year from Azerbaijan through that project.
Bahrami added Iran has taken part in drilling operations in its territorial waters of the Caspian Sea following an early agreement regarding operations in the region.
Littoral states to the Caspian Sea are at odds over several resource developments in the region stemming from a row over territorial boundaries.
Bahrami said Iran would not expand its operations in the Caspian Sea until territorial status was determined.
"We are implementing our projects in areas that are not controversial," he said.