French to join Japanese to develop Iran's 26b barrel Azadegan oil field

[oblivious]

Summary:
1. Azadegan is Iran's largest onshore oil field with an estimated 26 billion barrels.

2. In 2004, Inpex, the Japanese state oil company signed a $2b agreement with the National Iranian Oil Company to develop the fields, with Japan having 75%.

3. Japan has been stalling, under pressure from the US, but also because the site is still littered with landmines.

4. Iran gave Japan until Sept 15 to move or they will give it to Chinese or French companies.

5. Total (French) is now expected to take between 12 and 15% of the project.

6. Azadegan is expected to produce 150,000 bpd by mid-2008, rising to 260,000 bpd by early 2012. The Japanese hope to import two thirds of the field's output.

7. Japan had been Iran's biggest buyer of oil (385K bpd), but in the last quarter was second (285bpd), behind China (339K bpd). India is third (230K bpd).

8. Japan normally imports almost 15% of its oil from Iran.

The Times September 05, 2006
Total set to join $2bn oil project in Iran
TOTAL is ready to join a $2 billion Iranian energy project led by Inpex, the Japanese state oil company, to develop part of the giant Azadegan oilfield. The long-awaited launch of the Azadegan project, which had been expected to start in March last year, is likely to anger Washington

Azadegan, located near the Iraqi border, is reckoned to contain some 26 billion barrels of crude. Negotations between Inpex and National Iranian Oil Company began in 2004 over a joint venture in which the Japanese would acquire a 75 per cent share of the oil prospect.

Wrangling over the terms of the deal and other delays have dogged the project. American pressure on the Japanese not to sign a deal has also been blamed for the slow progress.

"There are no longer differences over the price and an understanding has been reached," said Hossein Kazempour Ardebili, Iran's representative to Opec, at the weekend.

"Inpex, Total and the National Iranian Oil Company will execute the project," he added.

http://business.timesonline.co.uk/article/0,,13130-2342609,00.html

Sept 1: Iran seeks China, Russia if oil agreement not reached with Japan
http://english.people.com.cn/200609/01/eng20060901_298835.html

Sept 3: Iran and Japan close to oil deal
http://news.bbc.co.uk/2/hi/business/5309904.stm

Sept 4: Japan's Inpex willing to continue implementing Iran's Azadegan Oil Field
http://www.payvand.com/news/06/sep/1046.html

Sept 5: Total mulls buying stake in Inpex’s Iran project
http://www.gulf-times.com/site/topics/article.aspx?cu_no=2&item_no=106142&version=1&template_id=48&parent_id=28

Sept 5: Total plans stake in $2b Iran project: Reuters
http://archive.gulfnews.com/articles/06/09/05/10064987.html


Re sanctions

Aug 21: Reuters: Japan wants oil left out of Iran sanctions
http://www.tradearabia.com/tanews/newsdetails_snOGN_article109889_cnt.html
http://www.omanobserver.com/22/Daily/World/World4.htm

Sept 1: Sanctions Against Iran Could Cost 10,000 German Jobs
http://www.dw-world.de/dw/article/0,,2153637,00.html?maca=en-aa-pol-863-rdf

Sept 6: France appears flexible on timetable for Iran nuclear negotiations
France appeared Thursday to soften its demand that Iran suspend nuclear enrichment activities before returning to the bargaining table over Tehran's nuclear program
http://www.iht.com/articles/ap/2006/09/07/europe/EU_GEN_France_Iran.php

Sept 6: France differs with Bush on 'war of civilizations'
...he (French foreign minister) called for "more than ever maintaining a dialogue with Tehran" and was wary of imposing sanctions, calling for a "gradual approach" to eventual measures against Iran.
http://www.teluguportal.net/modules/news/article.php?storyid=12586

Sept 7: France at odds with U.S. over Iran
http://english.people.com.cn/200609/07/eng20060907_300282.html

Sept 7: China Won't Support Sanctions Against Iran in Nuclear Dispute
http://www.bloomberg.com/apps/news?pid=20601080&sid=alLY_BmOet0A&refer=asia

Sept 8: No Iran sanctions during talks: EU
http://www.theaustralian.news.com.au/story/0,20867,20378762-1702,00.html

Sept 8: U.S. wants clarification from EU's Solana on Iran
http://news.xinhuanet.com/english/2006-09/09/content_5068289.htm

Sept 8: U.S. looks for quick Iran sanctions resolution
http://today.reuters.com/news/articlenews.aspx?type=topNews&storyID=2006-09-08T155127Z_01_L0859527_RTRUKOC_0_US-NUCLEAR-IRAN.xml&WTmodLoc=NewsHome-C1-topNews-9

Russia
17 Jan: Russia against sanctions on Iran
http://www.rte.ie/news/2006/0117/iran.html

Aug 25: Russia rules out UN sanctions against Iran
http://news.yahoo.com/s/nm/20060825/ts_nm/nuclear_iran_dc

Aug 26: Russia rejects UN sanctions against Iran
http://english.people.com.cn/200608/26/eng20060826_297081.html

Sept 2: Russia Hints It Won’t Back Any Penalties Against Iran
http://www.nytimes.com/2006/09/02/world/middleeast/02iran.html

[tocqueville]

1. so if the Japanese don't approve an attack on Iran

will it be "freedom sushi" and talk of "vested oil interests" ?

[Kagemusha]

2. Ah, you didn't know? The Japanese view doesn't count.

It's the US that keeps fleets to maintain the flow of oil, or to shut it off, not Japan.

[Tierra_y_Libertad]

3. How dare Japan & France act in their own interests?!?

Without approval from the bosses in the White House.