U.S. opposes Japan's participation in Iran oil project

From SMCCDI: daneshjoo.org

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U.S. opposes Japan's participation in Iran oil project
News Section
Jun 30, 2003

WASHINGTON - The United States voiced opposition Monday to Japanese participation in a project to develop one of Iran's largest oil fields, claiming such investment would hamper efforts to stop Iran's suspected nuclear arms program.
''Given recent revelations about Iran's nuclear programs and efforts being made through the International Atomic Energy Agency (IAEA) to deal with the threat Iran poses, this would be a particularly unfortunate time to go forward with major new oil and gas deals,'' State Department spokesman Richard Boucher said in a statement.

He also said U.S. law requires the U.S. government to impose sanctions on international companies that do business with Iran and Libya.

Boucher declined to comment on whether the U.S. is pressing Japan to withdraw from the oil development project through diplomatic channels.

But he said, ''Our concerns about Iranian policies and actions, and about oil and gas investment there, are matters that regularly figure in our diplomatic exchanges.''

The private but state-backed Japanese consortium, including Tomen Corp., Inpex Corp. and Japan Petroleum Exploration Co., is seeking to sign a contract with the Iranian government on the project to develop part of the Azadegan field in southwestern Iran.

In July 2001, Japan's Economy, Trade and Industry Minister Takeo Hiranuma and Iranian President Mohammad Khatami agreed to try to conclude a deal on the oil development project.

Although no accord had been reached by Monday, the deadline set by Japan and Iran, the Japanese consortium plans to continue negotiations.

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.

The U.S. is accusing Iran of trying to secretly develop nuclear arms and has called on it to sign an additional protocol with the IAEA for strengthened inspections of its nuclear facilities.