The countries' stand-off was caused after a row over disputed oil and gas assets in the Caspian Sea.

Representatives from both countries met in Ashgabat at the weekend and have agreed to meet again in Baku in early September.

Azeri Energy Minister Natik Aliyev said that it was possible to start development work at Kapaz, known as Serdar by Turkmenistan, even before a final delineation agreement as long as the two countries wished to do so.

Germany's