Iran and Japan signed a protocol agreement in Tehran Sunday, July 8, for Japanese "participation in exploration operations" of the southwestern Azadegan oilfield.
The agreement, the first of its kind concluded between Iran and Japan in the oil sector, was signed in the presence of Japan's Trade Minister Takeo Hiranuma and Iranian Oil Minister Bijan Namdar Zangeneh.
According to the agreement, Japan will help carry out three dimensional seismic operations over an area of 1,180 square kilometers (730 miles)," in the Azadegan field in southwestern Iran.
The agreement also includes a participation of the Japan National Oil Corporation (JNOC) which will provide 10 million dollars "as part of the total expected expenditure."
The two ministers also signed a "cooperation declaration in matters of energy" which plans for the training of some Iranian engineers in Japan "in the energy sector."
The two sides also vowed to help "accelerate" further negotiations on the Azadegan oil field, while Hiranuma told reporters at the end of the ceremony that his country hopes to strengthen its oil cooperation with Iran "without any consideration for US opposition."
"We have created the necessary legal basis for our oil sectors to be able to participate in projects abroad and without consideration for US opposition," the Japanese minister said.
Questioned on the estimated total costs for the project, Hiranuma said it was "too early" to speak of it, adding that the date for a final signature on the agreement was not yet known.
"We proposed a Master Development Plan (MDP) to Iran in order to define the framework of our cooperation for this project, and we hope to be able to carry out something more specific towards the end of the year," he said.
Zangeneh for his part lauded the "support" of the Japanese government for an oil coopertion between the two countries, adding that Tehran supports a long-term cooperation with Japan in the oil sector.
"We hope to be able to assure long-term Japanese demands for our oil," Zangeneh said once again affirming that Washington's sanctions on Iran were only damaging US firms.
"Thanks to the support of the Japanese government for an oil cooperation with Tehran, a new chapter has opened in the ties of the two nations," the Iranian minister said.
Hiranuma arrived early Sunday in Tehran for the first visit by a high-ranking Japanese economic official in Iran since the 1979 Islamic revolution and is scheduled to meet with Iranian President Mohammad Khatami.
Iran is Japan's third most important oil supplier, but the two countries are not linked by any trade agreement Tehran granted Japan priority for studying the development of the southwestern Azadegan field, which has oil reserves of between 26 billion and 40 billion barrels and a presumed capacity of 400,000 barrels per day.
Zangeneh recently confirmed his ministry was negotiating with the Japan National Oil consortium.
Last week, vice-chairman of the National Iranian Oil company, Ahmad Raghozar, said the Royal Dutch Shell oil giant - which returned to Iran in December 1999 - would be a partner in the Japanese project. Shell's stake in the project is estimated by Iranian sources at around a third.
If the project goes ahead as planned, it could become Japan's largest oil field development, and what the Japanese press said could be an eight-billion-dollar foreign investment, which would also make it the biggest oil deal ever signed in Iran.
Iran is the last leg of Hiranuma's tour of the region, which already took him to Saudi Arabia, the United Arab Emirates and Kuwait. — (AFP)
© Agence France Presse
© 2001 Mena Report (www.menareport.com)
