Japan Resolute on Iran Oil Project

Text of report in English by Japanese news agency Kyodo

Tokyo, 23 March: Japan currently sees no change in promoting a 2bn dollars project to tap into one of the world’s largest oil fields in Azadegan in Iran, despite Tehran’s nuclear ambitions, high- ranking Japanese officials said Thursday [23 March].

“The Azadegan oil development is extremely important for Japan’s efforts to secure stable energy supply. We will deal with the situation based on the stance that both stable oil supply and nuclear nonproliferation are important,” Chief Cabinet Secretary Shinzo Abe said at a press conference.

Commenting on news reports that the US government has unofficially requested Japan to freeze the oil development in Iran, Abe said, “We have had no discussions on the future of the project with US officials.”

The Sankei Shimbun said in its Thursday morning edition that US Deputy Secretary of State Robert Zoellick and Undersecretary for Arms Control and International Security Robert Joseph have informally asked Japan to halt the Azadegan project.

Vice Economy, Trade and Industry Minister Hideji Sugiyama also denied the report and expressed hope that Iran will comply with its obligations under the International Atomic Energy Agency to allay concerns in the international community.

He also emphasized Japan’s position as the only country which has suffered atomic bomb attacks in reference to the nuclear issue.

Japan’s government-linked oil developer Inpex Corp, the National Iranian Oil Co and its subsidiary agreed in 2004 on the joint oil development. The field is estimated to have 26bn barrels of oil reserves.

US Ambassador to the United Nations John Bolton urged Japan earlier this month to “think through” the Azadegan project, especially at a time when Iran faces possible sanctions from the UN Security Council over its nuclear programmes.

Last week, a US House of Representatives committee approved a sanctions bill against Iran that is likely to affect Japanese firms involved in the oil development project. The Iran Freedom Support Act legislation beefs up sanctions on foreign entities doing business in Iran.