Japan to lose most of Iranian oil mega-project
TOKYO (AFP) - Japan has said that it is losing most of its stake in a project to develop Iran's largest onshore oil field in face of possible sanctions on Tehran over its nuclear program.
Iran has told Japan it would have only a 10 percent stake in the Azadegan oil field, not the 75 percent agreed when the two countries signed the two billion-dollar development deal in 2004.
Japan's government-backed oil developer Inpex is continuing talks with the Iranian national oil company with the aim of lowering its share to some 10 percent, company officials said.
Inpex will transfer the balance to National Iranian Oil Co., handing over the status of the "project operator" to the Iranian side, Inpex Holdings vice president Katsujiro Kida said.
"It will be meaningful from a long-term viewpoint on relations with Iran and as a decision of management," he said Friday.
Inpex, owned 29.35 percent by the Japanese government, is expected to maintain the right to import crude oil from the field in the future with the 10-percent stake.
"The two sides are working out details on how to transfer the balance to National Iranian Oil Co.," said Shuhei Miyamaoto, head of Inpex's investor relations unit.
Inpex has already invested 10 billion yen (85 million dollars) in the project but it is not sure what its total investment will be, he said.
National Iranian Oil managing director Gholam Hossein Nozari told the Fars news agency earlier this week that the Japanese had "lost their chance" due to stalling.
Due to funding needs, Iran is likely to transfer most of its concession to a third party with France's Total SA among the possible candidates, the agency added.
Analysts have speculated that Japan may be deliberately stalling as it expects Iran to face sanctions over its nuclear program that would make the oil field a poor investment.
Japan had earlier defied pressure from the United States, its closest ally, to cancel the deal, which was seen as important for Iran's integration in the world economy at a time that it is threatened with sanctions.
Japan, the world's second largest economy, is almost entirely dependent on the Middle East for its oil and imports about 15 percent of its total oil consumption from Iran.
TOKYO (AFP) - Japan has said that it is losing most of its stake in a project to develop Iran's largest onshore oil field in face of possible sanctions on Tehran over its nuclear program.
Iran has told Japan it would have only a 10 percent stake in the Azadegan oil field, not the 75 percent agreed when the two countries signed the two billion-dollar development deal in 2004.
Japan's government-backed oil developer Inpex is continuing talks with the Iranian national oil company with the aim of lowering its share to some 10 percent, company officials said.
Inpex will transfer the balance to National Iranian Oil Co., handing over the status of the "project operator" to the Iranian side, Inpex Holdings vice president Katsujiro Kida said.
"It will be meaningful from a long-term viewpoint on relations with Iran and as a decision of management," he said Friday.
Inpex, owned 29.35 percent by the Japanese government, is expected to maintain the right to import crude oil from the field in the future with the 10-percent stake.
"The two sides are working out details on how to transfer the balance to National Iranian Oil Co.," said Shuhei Miyamaoto, head of Inpex's investor relations unit.
Inpex has already invested 10 billion yen (85 million dollars) in the project but it is not sure what its total investment will be, he said.
National Iranian Oil managing director Gholam Hossein Nozari told the Fars news agency earlier this week that the Japanese had "lost their chance" due to stalling.
Due to funding needs, Iran is likely to transfer most of its concession to a third party with France's Total SA among the possible candidates, the agency added.
Analysts have speculated that Japan may be deliberately stalling as it expects Iran to face sanctions over its nuclear program that would make the oil field a poor investment.
Japan had earlier defied pressure from the United States, its closest ally, to cancel the deal, which was seen as important for Iran's integration in the world economy at a time that it is threatened with sanctions.
Japan, the world's second largest economy, is almost entirely dependent on the Middle East for its oil and imports about 15 percent of its total oil consumption from Iran.

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