Japan and Iran are to reach agreement on on a project for development of the giant Azadegan oilfield located 80 kms west of southwestern city of Ahvaz (Khuzestan province), IRNA reported from Tehran.
An informed source at Oil Ministry said the two sides are to enter into a deal for development of Azadegan oilfield, which covers 20 kms of land, after four years of lengthy talks.
Japan had decided to abandon the lucrative deal under U.S. pressures for the country's alleged clandestine nuclear development program.
Japan and Iran agreed in 2000 to start negotiations over the oilfield.
In the course of her January visit to Tehran, Japanese Foreign Minister Yoriko Kawaguchi and her Iranian counterpart Kamal Kharazi voiced their respective countries' willingness to resume talks on the oilfield until they reach a satisfactory result.
A Japanese government-backed oil company hopes to begin production by 2006 with a plan to produce 500,000 barrels of oil a day. Japan plans to import two thirds of the output.
The field believed to be the biggest onshore project in the post 1979 Islamic Revolution is expected to cost dlrs 2.8 billion.
It is estimated to contain 35 to 45 billion barrels of oil in place with the capacity to yield about five billion barrels of oil.
... Payvand News - 2/18/04 ... --