Japan hopes for U.S. understanding over Iranian oil deal

Japan hopes for U.S. understanding over Iranian oil deal

Agence France-Presse, Tokyo

Japan will make efforts to gain U.S. understanding for a plan to develop Iran's massive Azadegan oil field while urging Tehran to clear up suspicions about its nuclear ambitions, the trade minister said on Friday.

"We should tell Iran squarely what we have to say about our concerns" over the suspected development of a nuclear arsenal, Economy, Trade and Industry Minister Takeo Hiranuma told a news conference.

"At the same time, we must explain (to the United States) our country's stance on energy issues and strive to make things go in a better direction," he said.

The comment came a day after a cautious remark about the deal, estimated to be worth more than two billion dollars, by a top foreign ministry official.

"I do not think we can sign the deal on the Azadegan oil field, at least at the moment, although we have to make a conclusion after seeing future developments," Senior Vice Foreign Minister Toshimitsu Motegi told reporters.

Washington, which accuses Tehran of using an atomic energy program as a cover for the secret development of a nuclear arsenal, is opposed to the planned Japanese investment.

State Department spokesman Richard Boucher said in a statement earlier this week the department "would be opposed to such investment at any time.

"This would be a particularly unfortunate time," he said, warning of possible sanctions if the deal goes ahead.

Japan and Iran agreed in 2000 to start negotiations over the oil field.

The Japanese consortium includes trading house Tomen Corp., Inpex Corp., and Japan Petroleum Exploration Co.

Iranian Foreign Minister Kamal Kharazi told reporters on Wednesday that Japanese companies "can of course continue their negotiations" but would no longer be given exclusive signing privileges.

"Others can also take part in the negotiations," the minister said.