Japan and Iran continues oil talks despite pressure from US

Talks are continuing between Iran and Japan on developing one of Iran's largest oil fields despite pressure from the US for Tokyo to end the talks, Iranian officials have told. Their comments follow a visit to Iran by Japanese Foreign Minister Yoriko Kawaguchi.
During that visit, sources say, Kawaguchi assured Iranian officials of Tokyo's eagerness to sign a deal as quickly as possible to develop the massive Azadegan onshore oil field in south-western Iran.

"The Japanese foreign minister reaffirmed (Tokyo's) eagerness to conclude this deal," a senior Iranian oil official said. He added: "I am optimistic that these talks will reach a positive end.”
Kawaguchi also told Iranian reporters during her trip that Japanese oil companies were pressing ahead with talks to develop Azadegan. A government-backed Japanese consortium, of Tomen, Inpex and Japan Petroleum Exploration, were initially given exclusive rights to the development of the field, worth just under $ 3 bn.

As Japan imports virtually all of its energy needs, tapping into Azadegan's huge oil resources has been a top priority for Tokyo. But under pressure from the US, which has accused Iran of trying to develop nuclear weapons, Tokyo backed off from inking a deal. Negotiations between the two countries have also been mired in differences over contract terms.
By missing an initial deadline last summer, Japan's exclusive rights to develop the field where cancelled and Iranian officials made no secret of their intentions to talk to other oil firms about developing Azadegan. Since then several other international oil majors, reported to include France's Total and Norway's Statoil have expressed an interest in Azadegan.

But keen to remain in the picture, Tokyo recently asked Tehran to extend its deadline on Azadegan. It is unclear whether Iran has agreed to this. An Iranian oil source said a team of Japanese technical experts are due to arrive in Tehran to continue discussions on Azadegan.
"I think the US recognizes the needs of Japan to secure its energy supplies," an Iranian official said.