Japan asks Iran to hold talks on nuclear, energy issues

Tokyo (Platts)--17Apr2006

Japan has approached Iran to hold high-level talks in Teheran in late
April to discuss various issues, including the Islamic Republic's nuclear and
energy deals, an official at Japan's foreign ministry said Monday.

The Japanese delegate will likely reiterate its stance urging Iran to
stop its uranium enrichment program, the source said. Tokyo will also express
its concern that if Teheran keeps ignoring international calls to suspend its
uranium enrichment program, it may affect the Japanese development of the
multi-billion-dollar Azadegan oil field, the source added.

Japanese upstream player Inpex and the National Iranian Oil Corporation
in February 2004 agreed on a 75:25 partnership to develop the Azadegan
project, which at the time came with a $2 billion price tag.

But the partners have made little progress since, putting a question mark
on previous expectations that the 26 million barrel field would start
commercial production in mid-2008 at 150,000 b/d.

The Japanese side says it has been waiting for the Iranian authorities to
complete de-mining the field, a task Tehran says is almost complete. But in
the meantime, Inpex has neither signed on a major foreign partner -- which it
needs to proceed with the project -- nor tied up the necessary loans.

Japan imported 33.73 million kl of crude from Iran, or 13.8% of its
overall crude imports in 2005, according to data from the METI.

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