Japan and Iran Seal Ground-Breaking Oil Deal

Originally published May 24 2004

Signature of the contract on the development of the Azadegan oilfield, worth $2.8 billion and with an estimated capacity of 36 billion barrels, will guarantee the energy security of Japan for 20 years. The deal is so important that it would have been proper for Japanese Prime Minister Junichiro Koizumi to participate in the signing ceremonies himself. However, as a result of US pressures, the Japanese government eventually dispatched the director of energy and natural resources affiliated to Japan's Ministry of Industries to Tehran to participate in the signing ceremonies at the same time as security forces were sent to Iraq.

The ceremonies were also attended by the Japanese ambassador to Iran, together with most high-ranking officials of the Iranian Ministry of Oil. The contract was viewed as a giant step in the development of Iran's oil, gas and petrochemical industry.