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Nippon Oil Officials to Visit Iraq to Finalize Oil Development Deal
Friday, September 11, 2009 9:51 AM


(Source: Kyodo News International, Tokyo)trackingBy Kyodo News International, Tokyo

Sep. 11--CAIRO -- Officials of Japan's Nippon Oil Corp. will visit Iraq within several days to make final adjustments on a proposed deal to develop an oil field in a southern Iraqi city, the Iraqi oil minister has said.

The move follows a basic agreement a Japanese consortium led by Nippon Oil struck with the Iraqi government in August to obtain the right to develop an oil field in Nasiriyah.

Oil Minister Hussain al-Shahristani said the Iraqi government and the Nippon Oil officials will discuss several issues that need to be adjusted before a final deal is reached.

Iraq, which has the world's third-largest proven crude oil reserves, and Nippon Oil, Japan's largest oil wholesaler, signed a memorandum of understanding on the deal in late August. The Japanese consortium has outstripped Eni S.p.A, an Italian energy firm that was also in talks with the Iraqi government for development rights in Nasiriyah.

The Nasiriyah field is expected to produce 600,000 barrels a day in two years' time. The estimated output is equivalent to more than 10 percent of Japan's daily consumption.

If the deal is finalized, the oil field will be the biggest in which Japanese companies play a leading development and production role.

The aspiration of Japanese firms in Iraq comes as Japan lost part of its concession in Iran's Azadegan, one of the largest oil fields in the region, for some political reasons.

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To see more of Kyodo News International, go to http://www.kyodonews.com

Copyright (c) 2009, Kyodo News International, Tokyo

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