Inpex Holdings Inc. can someday regain its lost stake in developing the huge Azadegan oil field, the head of Iran's state-run firm in charge of the project said Oct. 7.

The remarks by Mehdi Bazargan, managing director of Petroleum Engineering & Development Co., came after Inpex said it agreed with National Iranian Oil Co. to cut its concession in the $2 billion project to 10 percent from 75 percent.

"If, in the future, Inpex solves its domestic problems, it is possible in the event of an agreement for Inpex to get back its shares or parts of its shares," Bazargan said.

He said Iran has completed Inpex's requirements, including removal of land mines left over from the 1980-1988 Iran-Iraq War, but "Inpex has not been able to solve its problem with financial institutions in Japan."

Petroleum Engineering & Development was set up in 1994 to manage and supervise major oil and gas projects at National Iranian Oil, according to Petroleum Engineering & Development's Web site.

Iranian Oil Minister Kazem Vaziri Hamaneh has also said it would be possible for Inpex to regain the 75 percent concession depending on future negotiations, Iran's state-run television station reported Oct. 8.

Meanwhile, the United States has given a veiled endorsement to Inpex's decision to reduce its investment in the Azadegan project.

Asked if the United States considers it a positive move, State Department spokesman Tom Casey said such decisions are in the purview of individual governments.

"But obviously," he added, "I think under the circumstances, I don't think we view this as the appropriate time to be making major investments in Iran."

The U.S. has been warning Japan to be wary of investing in Iran considering the international furor regarding its apparent determination to develop nuclear weapons. Iran insists the nuclear program is for civilian purposes only.

"Given the serious concerns we have with Iran's behavior, desisting from anything that might make them feel like everything's fine and normal is good," a U.S. official said on condition of anonymity.

The Japan Times Weekly: Oct. 14, 2006
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