US presses Japan to withdraw from Iranian oil deal

The United States is putting pressure on the Japanese government to withdraw from a large-scale Iranian oil program. The move is part of a broader US policy to persuade Iran to abandon its suspected nuclear weapons program and sign an agreement to allow UN inspections at all its nuclear facilities, an US official and sources close to the negotiations said.
"A US State Department official confirmed that the Bush administration was pressing Japan not to send the 'wrong message' to Iran," they added.

The private but state-backed Japanese consortium includes Tomen, Inpex and Japan Petroleum Exploration. Representatives are now in Tehran and are expected to sign a contract within the next few days as soon as they get the nod from Tokyo. Washington has been exerting pressure on separate occasions from various quarters.
US Secretary of State Colin Powell raised the issue with Japanese Foreign Minister Yoriko Kawaguchi and US National Security Adviser Condoleezza Rice contacted senior officials in Tokyo. The Japanese government is trying to resist the pressure, but signing the deal could possibly be postponed until at least September, when further developments are expected at the International Atomic Energy Agency concerning Iran's nuclear issue.

The oil project is to develop part of Azadegan, one of Iran's largest oil fields. In July 2001, Japan's Economy, Trade and Industry Minister Takeo Hiranuma agreed with Iranian President Mohammad Khatami about its development.
Japan hopes the oil project will secure an important source of energy supplies, after losing the rights to the Khafji area oil field in Saudi Arabia two years ago.