The South Caspian Basin extends across parts of Turkmenistan, Azerbaijan and Iran. The basin offers some value creation potential to explorers. However this is constrained by limited volumes and harsh fiscal terms. Significant licensing activity is unlikely in the near term, as several prospective blocks are within areas subject to border disputes with Iran and Azerbaijan. If the maritime disputes can be settled, then the large areas of unlicensed acreage in the centre of the basin could open up to international investors. This area is expected to offer significant deepwater exploration potential.