ID :
76941
Tue, 08/25/2009 - 20:04
Auther :
Shortlink :
https://oananews.org//node/76941
The shortlink copeid
Japan close to winning right to develop Iraqi oil field
+
CAIRO, Aug. 25 Kyodo -
A group of Japanese firms led by Nippon Oil Corp. has agreed in principle with
the Iraqi government to obtain the right to develop an oil field in Iraq in a
deal that would be the biggest of its kind for Japanese companies, sources
close to the negotiations said Monday.
The move came as Iraq, which has the world's third-largest proven crude oil
reserves, is trying to attract foreign investment in a process seen as crucial
to the future of the war-battered country.
The agreement suggests that the Japanese group has outstripped Eni S.p.A, an
Italian energy firm that is also in talks with the Iraqi government for
development rights in the southern Iraqi city of Nasiriyah. Baghdad is expected
to announce next month a finalized list of companies that will be involved in
the project.
Meeting the same day in Istanbul, officials from Nippon Oil, Japan's largest
oil wholesaler, and the Iraqi delegation, led by Oil Minister Hussain
al-Shahristani, signed a memorandum of understanding while agreeing to meet
again soon in Baghdad, Iraqi Deputy Oil Minister for Exploration Abdul Kareem
al-Leavy said.
''We have reached a solution on the payment with Nippon (Oil),'' Leavy, who
joined the meeting, told Kyodo News, referring to the most crucial issue to be
addressed during the talks.
At the meeting, Nippon Oil made a new proposal concerning the cost of
developing the field, he said without elaborating.
The Nasiriyah field is expected to produce 600,000 barrels a day in two years'
time. The estimated output is equivalent to more than 10 percent of Japan's
daily consumption.
If the deal is finalized, the oil field will be the biggest in which Japanese
companies play a leading development and production role, with Nippon Oil and
others required to raise the field's output capacity from the current 300,000
barrels a day during a two-year period.
In Tokyo on Tuesday, Japanese Minister of Economy, Trade and Industry Toshihiro
Nikai reiterated the government's intention to give full backing to the
Japanese companies involved, which include oil explorer Inpex Corp. and
engineering firm JGC Corp.
But speaking at his regular press conference, he cautioned against excessive
optimism, saying they ''are still in the midst of adjustment and
negotiations.''
Nippon Oil only said, ''Negotiations are in progress but we've not heard any
agreement has been reached.''
In June, a consortium led by BP plc of Britain and China National Petroleum
Corp. won a contract to develop Iraq's Rumaila field, agreeing to Baghdad's
terms, but other fields failed to attract bids that met the conditions.
As for the Nasiriyah field, Iraq has not conducted any bidding, allowing the
Japanese alliance and Eni to directly negotiate with the Iraqi government.
Analysts say Nasiriyah could be a milestone for Japan's search of oil in the
Middle East, on which the country depends for nearly 90 percent of its total
oil imports.
The aspiration of Japanese firms in Iraq comes as Japan lost part of its
concession in Iran's Azadegan, one of the largest oil fields in the region, for
some political reasons.
Inpex, which had held a 75 percent stake in Azadegan, reduced the interest to
10 percent in 2006 amid growing international criticism against Tehran's
nuclear development programs. The decision was widely seen as affected by the
Japanese government, which was apparently under pressure from the United
States, a staunch ally that had been increasingly hostile against Iran.
Earlier this month, some media reported China's state-run oil company had
signed a memorandum with that of Iran to obtain a 70 percent stake in the oil
field, in a development that underlined that Beijing snatched an attractive
foreign investment project away from Japan.
Some ministers of Japan and Iraq, who met July in Tokyo, confirmed there is a
need to upgrade economic relations between the two countries, with Shahristani
promising to support Japanese firms operating in Iraq and to continue making
efforts to improve security in the country, where insurgent attacks are
continuing.
==Kyodo
CAIRO, Aug. 25 Kyodo -
A group of Japanese firms led by Nippon Oil Corp. has agreed in principle with
the Iraqi government to obtain the right to develop an oil field in Iraq in a
deal that would be the biggest of its kind for Japanese companies, sources
close to the negotiations said Monday.
The move came as Iraq, which has the world's third-largest proven crude oil
reserves, is trying to attract foreign investment in a process seen as crucial
to the future of the war-battered country.
The agreement suggests that the Japanese group has outstripped Eni S.p.A, an
Italian energy firm that is also in talks with the Iraqi government for
development rights in the southern Iraqi city of Nasiriyah. Baghdad is expected
to announce next month a finalized list of companies that will be involved in
the project.
Meeting the same day in Istanbul, officials from Nippon Oil, Japan's largest
oil wholesaler, and the Iraqi delegation, led by Oil Minister Hussain
al-Shahristani, signed a memorandum of understanding while agreeing to meet
again soon in Baghdad, Iraqi Deputy Oil Minister for Exploration Abdul Kareem
al-Leavy said.
''We have reached a solution on the payment with Nippon (Oil),'' Leavy, who
joined the meeting, told Kyodo News, referring to the most crucial issue to be
addressed during the talks.
At the meeting, Nippon Oil made a new proposal concerning the cost of
developing the field, he said without elaborating.
The Nasiriyah field is expected to produce 600,000 barrels a day in two years'
time. The estimated output is equivalent to more than 10 percent of Japan's
daily consumption.
If the deal is finalized, the oil field will be the biggest in which Japanese
companies play a leading development and production role, with Nippon Oil and
others required to raise the field's output capacity from the current 300,000
barrels a day during a two-year period.
In Tokyo on Tuesday, Japanese Minister of Economy, Trade and Industry Toshihiro
Nikai reiterated the government's intention to give full backing to the
Japanese companies involved, which include oil explorer Inpex Corp. and
engineering firm JGC Corp.
But speaking at his regular press conference, he cautioned against excessive
optimism, saying they ''are still in the midst of adjustment and
negotiations.''
Nippon Oil only said, ''Negotiations are in progress but we've not heard any
agreement has been reached.''
In June, a consortium led by BP plc of Britain and China National Petroleum
Corp. won a contract to develop Iraq's Rumaila field, agreeing to Baghdad's
terms, but other fields failed to attract bids that met the conditions.
As for the Nasiriyah field, Iraq has not conducted any bidding, allowing the
Japanese alliance and Eni to directly negotiate with the Iraqi government.
Analysts say Nasiriyah could be a milestone for Japan's search of oil in the
Middle East, on which the country depends for nearly 90 percent of its total
oil imports.
The aspiration of Japanese firms in Iraq comes as Japan lost part of its
concession in Iran's Azadegan, one of the largest oil fields in the region, for
some political reasons.
Inpex, which had held a 75 percent stake in Azadegan, reduced the interest to
10 percent in 2006 amid growing international criticism against Tehran's
nuclear development programs. The decision was widely seen as affected by the
Japanese government, which was apparently under pressure from the United
States, a staunch ally that had been increasingly hostile against Iran.
Earlier this month, some media reported China's state-run oil company had
signed a memorandum with that of Iran to obtain a 70 percent stake in the oil
field, in a development that underlined that Beijing snatched an attractive
foreign investment project away from Japan.
Some ministers of Japan and Iraq, who met July in Tokyo, confirmed there is a
need to upgrade economic relations between the two countries, with Shahristani
promising to support Japanese firms operating in Iraq and to continue making
efforts to improve security in the country, where insurgent attacks are
continuing.
==Kyodo
