Iran welcomes growing energy ties with Japan

Iranian Oil Minister Bijan Namdar Zanganeh hoped that cooperation between Iran and Japan would witness growing expansion, specially in the oil and gas sector. Replying to the minister of economy, trade and industry of Japan, Toshimitsu Motegi’s letter, Zanganeh said, \"I would reciprocally like to take this opportunity to express my sincere wishes for promoting the existing bilateral relations between the two countries in all fields particularly in oil and gas sectors and energy security.\" Nearly seven years ago, talks were held with Japan’s Inpex Company for the development of South Azadegan field, but a consortium of Japanese companies led by Inpex pulled out of the project. Exchanging letters between Iran’s oil ministry and consuming countries take place at a time when international oil companies and consuming countries express their growing willingness for cooperation with Iran in the oil and gas sector. Earlier this week, Shell and Total chief executives stated that lifting sanctions and opening up Iran’s vast oil and gas resources to global companies will be vital to meeting the world’s future energy needs. Peter Voser, the chief executive of Royal Dutch Shell, and Christophe de Margerie, his counterpart at France’s Total, used the Oil & Money conference in London on Tuesday to highlight the potential energy windfall if sanctions preventing international oil companies from dealing with Tehran were lifted. “Longer term, Iran’s oil and gas resources will have to be developed to meet demand,” Mr Voser said. He was echoed by Mr de Margerie, who said that he hoped doing business with Iran would again be permitted “as soon as possible, not just for Total but for the world and for Iran. Any country cannot stay out of the system.” Before the tightening of sanctions against Iran a few years ago, Shell and Total were two of the most active companies doing business with the Islamic Republic. In 1999, Shell defied a US sanctions threat to sign an estimated $800m (£492m) deal with Iran to develop two offshore oil fields in the Persian Gulf known as Soroosh and Nowrooz. The project was completed in 2005. Until 2009, Total was involved in the drawn-out development of Iran’s vast South Pars natural gas field, also in the Persian Gulf’s waters. Shell was reportedly blocked earlier this year from settling a $2.3bln debt with Iran through the supply of grain and medicine. Since an oil embargo was imposed in July, the European Union has extended sanctions to include gas exports and shipbuilding equipment.