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Friday, 1st October 2010
In General Japan News,

Japan announces oil withdrawal from Iran

Japanese-controlled oil developer Inpex Corp has confirmed that it will cease its operations in Iran's largest onshore oil project.

The company has decided to make the move because otherwise it could face sanctions by the US government, according to Japanese media.

Inpex Corp has been connected with the Azadegan oilfield for a number of years and there are an estimated 42 billion barrels of oil at the site. In 2006, the company did reduce its stake in the project form 75 per cent to ten per cent because of previous sanction concerns.

"There are various risks, as we were asked by Iran to invest more in the project," an anonymous government source told the Yomiuri newspaper.

If Inpex Corp was subjected to sanctions it could limit its involvement with the US markets as well as threatening its projects in areas of the Middle East and Africa.

Inpex Corp has also announced it has obtained government backing to purchase a 15 per cent share of an Indonesian's offshore project from oil and gas company Pearl Oil.

Written by Susan Ballion. 

Related news stories:
Japan imposes new Iran nuclear sanctions (6th September 2010)
Japan makes uranium offer to Iran (25th February 2010)