Japan’s Inpex Corp. has started intense negotiations with National Iranian Oil Co. to develop the Azadegan oil field in southwestern Iran and is a strong candidate for the contract, a high-ranking Iranian official has said.
Inpex signed a memorandum of understanding for the project last June, and the passing of a six-month study period means a final proposal is expected soon, said Noreddin Shahnazizadeh, managing director of Iran’s Petroleum Engineering and Development Co.
“Inpex is one of the good names in the oil industry and as it has past experience and data regarding Azadegan it is one step ahead compared to its rivals and has a chance to win the Azadegan tender,” Shahnazizadeh said on Tuesday.
“There is no remaining conflict between Iran and Japan from the past over Azadegan,” Shahnazizadeh said. “We understood Inpex’s situation when they were forced to leave the project, and now they are welcomed again.”
According to Shahnazizadeh, Total has already handed over a final proposal for the project, while Inpex and CNPC will submit their presentations soon. The deal is expected to be completed around the first quarter of 2017, and the contractor will be chosen by summer.
Technical, financial and recovery factors will determine the winning bid, Shahnazizadeh said.
“Iran expects Japan to transfer and apply the use of modern technology in exploration, drilling and recovering to increase the rate of recovery, which is the most important criteria for Iran,” Shahnazizadeh said.
Japan was also the only country that accepted insurance risks through the period and transferred oil from Iran with its own vessels, a move that Shahnazizadeh described as “unforgettable loyalty.”
“I believe we will have a very close and friendly relationship with Japan in the oil sector in the future, as long as a third party doesn’t affect our relations negatively again,” Shahnazizadeh said.