Turkmenistan to seek compromise in Caspian dispute

ASHGABAT Oct 1 (Reuters) - Turkmenistan and Azerbaijan, two Caspian states disputing the ownership of several offshore oil and gas fields, may find a compromise solution, Turkmen President Kurbanguly Berdymukhamedov said on Thursday.

Berdymukhamedov had earlier threatened to take ex-Soviet peer Azerbaijan to an international arbitration court over the issue and said Turkmenistan would build a navy in the Caspian.

Turkmenistan has objected, in particular, to the development of Azeri and Chirag gas fields. But on Thursday Berdymukhamedov said he preferred a diplomatic solution.

"Azerbaijan is our good neighbour, we have always been and will remain brothers," Berdymukhamedov told reporters.

"We will continue diplomatic dialogue on this issue which may lead to a compromise."

Russia, Iran, Turkmenistan, Azerbaijan and Kazakhstan have long argued about the delimitation of the Caspian Sea, which contains vast oil and gas deposits. The arguments centre on whether the Caspian is a sea or an inland lake. (Reporting by Marat Gurt; Writing by Olzhas Auyezov)