Kunihiko Matsuo (left), president of Inpex Corp., and Iranian Deputy Oil Minister Mehdi Mirmoezi sign an oil development deal in Tehran.

The $2 billion deal will give Japan access to one of the world's largest oil reserves. Dependent on imports for almost all its energy needs, Japan has been seeking a stable source of crude oil since it lost its rights of negotiation in Saudi Arabia in 2000.

The deal came despite considerable pressure from Washington, which has accused Iran of pursuing a nuclear weapons program and sought to isolate the country.

Under the terms of the deal, the consortium, including Inpex Corp., Tomen Corp. and Japan Petroleum Exploration Co., will obtain rights to develop the oil field for 12 1/2 years.

The Japanese side will hold a 75 percent stake and the Iranians the remainder.

When actual production begins in 2007, the venture hopes to achieve initial output of 50,000 barrels a day, growing to 260,000 barrels a day in 2012. Japan hopes this will help make up for its lost oil rights in Saudi Arabia.

The Japan Times Weekly: Feb. 28, 2004
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