Officials with the Japan's Ministry of International Trade and Industry signed an accord with Iran that would give Japanese companies the right to negotiate to appraise and develop the Azadegan oil field.
The field is thought to contain an estimated five to six billion barrels of recoverable crude reserves. The agreement also may open the door for Japanese companies to participate in other Iranian oil and gas projects as minority partners.
The Azadegan field is thought to be capable of producing up to 400,000 b/d of oil. American oil and gas companies continue to be barred from participating in Iran projects due to trade sanctions imposed under the Iran-Libya Sanctions Act.
© 2000 Mena Report (www.menareport.com)