The Japanese say, "In February 2004, Japan signed a two billion dollar contract with Tehran for development of Azadegan oil field located in southwest Iran and the country is still committed to the document." Mohammad Reza Bahonar, vice speaker of Majlis (Iranian parliament) recently held talks with officials of Inpex Company on resumption of the Japanese work on the oil field. The main bone of contention between the two countries over the project is that the Japanese say that as long as Iran has not cleared the region of land mines (left from the 1980-88 Iraqi-imposed war), they can make no investments in the project. On the other hand, the amount of financial resources agreed upon by the two sides to be allocated for purchase of necessary equipment and machinery is low under the current conditions and that it should be raised. Apart from Iran-Japan disputes, the United States by exerting pressure on Japan has practically prevented the project from being launched. Washington has time and again informed Tokyo of its opposition to the project and this has caused the Japanese government as the biggest shareholder of Inpex Company to act with caution on the date for the launching the project. Japanese economic officials say that if Inpex Company does not start the project immediately it may lose the concession for development of the oil field particularly given that the Chinese and European firms are interested in contributing to the development of the huge Azadegan field. However, Inpex officials remind that they will launch the project in early 2006. IRAN'S VIEWPOINTS Iranian oil officials say they know nothing about the measures taken by Inpex Company and maintain that no specific development has taken place in this respect. Managing director of Oil Development and Engineering Company says that the main dispute between Iran and Inpex Company over the development of Azadegan oil field still persists and no development has taken place in connection with the implementation of the oil field development project. TOTAL AND AZADEGAN In order to get rid of ever increasing US pressure and make use of advanced European technology for development of Azadegan oil field, Japanese officials have agreed to cede 20 percent of their shares of the project to the French. The sale of the 20 percent share was hot news which was widely reflected in world mass media, attracting world public opinion once again to the Azadegan oil field and its arduous path of development. The news of the possible purchase of this amount of shares from the Japanese sharply boosted the value of Total's stocks at the Paris Stock Exchange. Confirming the news, the spokesman for Total Co. said in Paris that the company has always eyed the Azadegan oil field. French economic experts believe that the Japanese have sold 20 percent of their exploitation right on Azadegan oil field to get rid of US pressures. The Japanese economy minister in an interview with Japanese mass circulation daily Asahi announced that the Americans attached great importance to the implementation of the project arguing that the project should not be executed until the issue of Iran's nuclear program is solved. However, Engineer Abolhassan Khamoushi, managing director of Oil Development and Engineering Company denies knowing anything about the negotiations between Total and the Japanese. "Inpex Company has not informed us of the transfer of parts of its shares to Total Co., but based on the contract, it can transfer a part of its shares to a leading foreign company and Iran welcomes this." He makes it clear, "Inpex Company's partnership with a leading international oil firm with an aim of transferring technology for development of Azadegan oil field can be important but the problems between the Japanese company and National Iranian Oil Company over the implementation of the project have not been solved yet." JAPAN'S CONCERNS An energy affairs expert says that given the vastness of the oil field and its high profitability, the Japanese officials are worried that they might lose the deal because of their delays in implementing the project. So far, Inpex Co. has refused to launch the project under the pretext that the region is infested with land mines. The main reason for such delays is the pressures being exerted by the United States on Japan. Given that the date for completion of operations to clear the region of land mines left from the Iraqi imposed war has been announced, the Japanese are worried that they might lose the lucrative contract due to their failure to launch the project on time. Moreover, they are well aware that the American and Chinese oil firms eye this oil field. He adds that the Japanese who are facing technical problems in the areas of exploration and exploitation want to make use of European companies which are able to implement such projects and in fact a three billion dollar long term loan the Japanese had undertaken to grant to Iran at the time of former president Mohammad Khatami is a financial backup of this project. However, the Japanese daily cites the capabilities of Azadegan oil field as follows: "Work on Azadegan oil field will start in 2008, one year later than the date already agreed upon and Japan which does not enjoy any natural resources has to meet all its oil needs through imports from abroad. So, Japan thinks of developing its diplomatic ties with the Middle Eastern countries. The initial oil production from Azadegan oil field is estimated at 50,000 barrels within 40 months and the figure will increase to 150,000 barrels per day within 52 months and to 260,000 barrels per day within eights years of the start of the development project.”