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Japan, Iran join hands on Azadegan oil development TEHRAN, July 9, Kyodo - Iran and Japan agreed Sunday to cooperate toward concluding a contract on a Japanese-led consortium's plan to develop Iran's Azadegan oil field as soon as possible in a bid to realize commercial production in 2004. The agreement came in a joint statement issued after visiting Japanese trade minister Takeo Hiranuma's meetings with Iranian President Mohammad Khatami and Oil Minister Bijan Namdar Zanganeh. With the statement calling for promoting wider participation by Japanese concerns in Iran's energy development, the two countries also confirmed their support for such involvement in the South Pars gas field, one of the world's largest, and the Ahwaz-Bangestan oil field in western Iran, which are being developed mainly by European concerns, Japanese officials said. The two countries also agreed to begin research toward having Japanese companies participate in ''downstream'' oil businesses such as processing liquefied natural gas, and to launch a program of training some 100 Iranian energy-related experts in Japan, the officials said. On the Azadegan field, one of the world's largest remaining untapped deposits and the biggest in the country, Khatami told Hiranuma during their talks that Iran ''welcomes cooperation by the Japanese government'' for the development plan. Economy, Trade and Industry Minister Hiranuma told Khatami that Japan expects ''the president's help to realize the plan as soon as possible,'' they said. In the talks with the oil minister, Hiranuma addressed U.S. interests by expressing Japan's wish to ''have U.S. concerns take part'' in the consortium should Washington lift its sanctions against Iran. The consortium has launched full-fledged negotiations with the Iranian government over the plan to develop the oil field after submitting a business plan to Iran in late June that includes the participation of the Royal Dutch/Shell Group. Iran gave Japanese firms prime negotiation rights for development of the oil field when Khatami visited Tokyo last November. The Japanese consortium is led by Tokyo-based oil development firm Indonesian Petroleum Ltd. and Japan National Oil Corp. Other members include trading house Tomen Corp. and Japan Petroleum Exploration Co. The Japanese government and the Japanese industry have been anxious to find new oil fields to develop since Japan's Arabian Oil Co. lost its drilling rights in Saudi Arabia's Khafji oil field in February last year. The Azadegan field in southern Iran near the Iraqi border is estimated to yield up to 24 billion barrels of oil. Hiranuma is visiting Iran on the third leg of his four-nation trip to the Middle East, which has already taken him to Saudi Arabia and Kuwait. He will visit the United Arab Emirates before returning to Japan on Tuesday. The Middle East visit is aimed at strengthening ties with the top four suppliers of Japan's oil imports. |
