In his introductory remarks, Michael Dunn recounted the circumstances and significance of the July 23rd confrontation between an Iranian military vessel and an Azerbaijani ship conducting geophysical studies in disputed waters of the Caspian Sea. This incident, Dunn asserted, was a stark reminder that the apportioning of offshore rights has not yet been resolved to the satisfaction of the five Caspian littoral states. Dunn noted that the principal documents pertaining to the legal status of the Caspian are treaties signed by Iran and the Soviet Union in 1921 and 1940. Iran has insisted that the provisions of these treaties still apply, while the positions of the other littoral states (i.e., Azerbaijan, Kazakhstan, Russia, and Turkmenistan) have varied. Dunn pointed out that the dispute has not deterred the parties from pursuing exploration, signing contracts, or entering bilateral pacts on how to divide the Caspian. Yet, at the same time, the continuation of the status quo runs the risk of repeated incidents and heightened tensions of the kind that occurred this past July.

The Iranian foreign minister welcomes oil cooperation in the area but believes it of primary importance to agree upon common territories and territories of each state.