Global Arab Network | Iraq - Japan to develop Nasiriyah oil field

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Iraq - Japan to develop Nasiriyah oil field

Global Arab Network - - George Haddad

Tuesday, 25 August 2009 14:27

Japanese companies have agreed in principle with the Iraqi government to obtain the right to develop an oil field in the southern Iraqi city of Nasiriyah, a deal that would be the biggest ever such contract for Japanese firms, Kyodo News Agency reported Tuesday, citing sources.

Meeting in Istanbul, officials from Japan's largest oil wholesaler Nippon Oil Corp. and the Iraqi delegation led by Oil Minister Hussain Al-Shahristani signed a memorandum while agreeing to meet again in Baghdad soon, Kyodo said.

The estimated output is equivalent to more than 10 percent of Japan's daily consumption. The Asian nation is the world's third-biggest oil consumer after the US and China.

If the two sides finalize the deal, the oil field will be the biggest in which Japanese companies play a leading role in development and production, it said.

Trade Minister Toshihiro Nikai told a news conference Tuesday: "We'll tackle the project as a team of the government and the private sector."

"I hope for a good result," the minister said.

Japan, the world's second-largest economy, has few natural resources and is almost entirely dependent on the Middle East for its oil.

The Nasiriyah field is expected to produce 600,000 barrels a day, about 10 percent of Japan's whole crude consumption, Jiji Press reported.

Japan, officially pacifist since World War II, late last year ended a mission flying goods and personnel into Iraq on behalf of the US-led coalition and the United Nations.

Former prime minister Junichiro Koizumi earlier took the landmark step of sending troops to Iraq on a reconstruction mission, the first time since 1945 Tokyo has sent forces to a country where fighting was under way.

The Nippon Oil-led alliance also involves oil explorer Inpex Corp. and engineering firm JGC Corp. The Iraqi government plans to announce a list of companies that will be involved in the development of the oil field next month, the report added.

Last month, during his meeting in Tokyo with Al-Shahristani, Japan's Economy, Trade, and Industry Minister Toshihiro Nikai sought special consideration for Japanese companies over oil development projects in Nasiriyah.

Global Arab Network

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