VIENNA, Sept 12 (Reuters) - France's Total (TOTF.PA: Quote, Profile, Research) is interested in a 10-15 percent stake in Iran's Azadegan, seen as one of the largest unexploited oilfields in the world, head of exploration and production Christophe de Margerie said on Tuesday.
Total is seeking a part in a consortium to develop the field led by Japan's INPEX (1605.T: Quote, NEWS, Research).
<http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=google&guid=%7BCB9EE5A9-12DB-4CFD-B414-372088E74796%7D&keyword=> Iran parliament hopes Japan's Inpex opts out of Azadegan field By Sally Jones Last Update: 5:17 AM ET Sep 11, 2006
VIENNA (MarketWatch) -- The chairman of the Iranian Parliament's energy commission said Monday that lawmakers hoped Japan's Inpex Holdings Inc. (1605.TO) would withdraw from developing the Islamic republic's giant Azadegan oil field, adding the company has until the end of this month to decide on its future involvement in the project.
Kamal Daneshyar, who heads the commission, told Dow Jones Newswires in an interview Monday: "The Azadegan project hasn't yet been finalized with the Japanese and the view of Iran's parliament is that we hope that Japan will decline in finally getting involved".
He added: "Azadegan involves the drilling of 100 wells and one production unit. It is easy for Iranian experts to do this. Iran was happy to do a favor for the Japanese but if they decline, Iran will be very happy to complete this project" alone.
Daneshyar was speaking on the sidelines of an Organization of Petroleum Exporting Countries meeting in Vienna.
Inpex, Japan's largest oil and gas exploration company, has a 75% stake in the $2 billion development project, estimated to contain 26 billion barrels of oil reserves.
State-owned National Iranian Oil Co. (NIO.YY) holds the remaining 25% stake.
An Iranian oil official recently told Dow Jones Newswires that the Japanese and the NIOC had agreed on increasing investment in the project to $1.943 billion from $1.026 billion.
He also said that France's Total SA (TOT) "is joining the process with anywhere from a 12% to 15% stake in the project."
The Japanese government has a 30% stake in Inpex and it is two years since the leaders of Iran and Japan signed a memorandum of understanding to develop Azadegan.
Daneshyar said by the end of "September an agreement is needed and if they want to be involved they can come up with the financing."
He added: "It seems...Japan has to get a positive instruction by the U.S. (President George W. Bush) administration before they can do anything.
"They have to ask the king and clearly Bush considers himself the king of the world."
Japan is under pressure to side with the U.S. in a bid to halt Iran's uranium enrichment activities, through sanctions if warranted.
Inpex has said it won't pull out of Azadegan, pinning the delay on the Iranians who it says haven't finished clearing it of land mines.
Azadegan in southeastern Iran near the border with Iraq is a crucial field to develop, as it is expected to pump 150,000 barrels a day by mid-2008 and reach 260,000 b/d by early 2012.
Japan plans to import two-thirds of the output, which could provide as much as 10% of Japanese total crude imports.
-Contact: 201-938-5400 End of Story
<http://www.bloomberg.com/apps/news?pid=20601080&sid=a9Cx4KPOm4cU&refer=asia> Japan Government to Enter Iran Oil Drilling Talks (Update1) By Yuji Okada and Megumi Yamanaka
Sept. 12 (Bloomberg) -- Japan's government said it will enter talks to drill for oil in Iran days before a deadline to reach an agreement on the $2.5 billion Azadegan project sought by Japan's Inpex Holdings Inc.
``Iran plays an important role on issues in Japan's energy policy and the national interests,'' Japanese Trade Minister Toshihiro Nikai told reporters in Tokyo today. The government and Inpex ``will work closely and deal with the matter carefully.''
Iran may develop Azadegan, the Islamic republic's largest oil discovery in three decades, in partnership with Russia or China failing an agreement with Japan by Sept. 15, Kyodo News said on Aug. 27, citing Mehdi Bazargan, managing director of Iran's state oil company.
Japan, which imports 99 percent of its oil, has come under pressure from the U.S. to abandon Azadegan amid efforts to halt Iran's nuclear program. Iran, owner of the world's second- biggest oil and natural gas reserves, has refused requests by the United Nations to halt enrichment of uranium, a material that can be used in atomic bombs.
``A decision cannot be made by one side only,'' Nikai said, referring to Azadegan. ``We will watch closely to be able to respond flexibly.''
Inpex, Japan's biggest oil and gas explorer, plans to start moving ahead with the Azadegan project as soon as Iran completes removal of land mines planted during the Iran-Iraq war between 1980 and 1988 in the area, Chairman Kunihiko Matsuo said on June 1. The production target for the field is 260,000 barrels of oil a day by 2012. Under an earlier agreement with Iran, Inpex owns 75 percent of the field.
Total SA, Europe's third-biggest oil producer, may buy a stake in the field from Inpex, Total spokesman Paul Floren said in an interview from Paris on Sept. 4. Total has a strategic agreement with Inpex, which includes taking a stake in the Azadegan field, Floren said.
To contact the reporter on this story: Yuji Okada in Tokyo at yokada6 at bloomberg.net .; Megumi Yamanaka in Tokyo at myamanaka at bloomberg.net . Last Updated: September 12, 2006 00:31 EDT
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