Oil project won't affect stance on Iran: Japan

Tokyo, Aug 1: Japan said today that a billion-dollar project to develop a giant Iranian oil field would not deter Tokyo from demanding that Tehran give up its nuclear activities as laid out in a UN resolution adopted overnight.

Resource-poor Japan has been in a tough spot after Iran's nuclear ambitions surfaced, stuck between the need to meet its energy requirements and its desire to keep in line with Washington, its closest security ally.

But the top government spokesman, while noting the importance of developing the Azadegan field -- tipped as one of the largest untapped oil reserves in the world -- said the two issues were separate and would not affect each other.

''Azadegan is a very important project for our country in terms of securing stable energy resources. But on the other hand, we are working together with the international community over Iran's nuclear issue,'' Chief Cabinet Secretary Shinzo Abe told a news conference.

''Azadegan and other economic projects will not affect our position over the nuclear issue,'' Abe said, adding that Japan welcomed yesterday's UN Security Council resolution and urged Iran to abide by it.

The UN body passed a resolution overnight demanding that Iran suspend its nuclear activities by Aug. 31 or face the threat of sanctions, the first time it included legally binding demands and a sanctions threat.

Japanese Foreign Minister Taro Aso, who told Reuters in June that Tokyo would join international sanctions imposed over Iran, said resolving the nuclear standoff was more important.

''The nuclear issue takes precedence,'' Aso said, when asked about Tokyo's position over the Azadegan project.

Japan and Iran have been deadlocked in negotiations over developing the field since the deal was signed in 2004, when the project was thought to require an investment of some 2 billion dollars.

Last week, Iran said it would finalise the Azadegan deal by August 22 with Japan's INPEX Holdings, but Japan's biggest oil explorer -- whose major stakeholder is the government -- said landmines in the area prevented a quick agreement.

Iran had long been Japan's third-largest supplier of oil, but Japanese refiners have cut down on Iranian oil following the nuclear stand-off with the West, and its standing fell to fifth place in June.

Reuters

Related Stories