Leading Japanese producer Inpex Corp's flagship Iranian oilfield project is being delayed by the slow removal of landmines from the area, but will not be affected by growing political tensions between Tehran and the West, the company's top executive said.
The company is under no pressure to slow or withdraw from the billion-dollar Azadegan field, by far the biggest project on its books, Inpec president Naoki Kuroda said.
"The development will be delayed slightly because the removal of landmines has not been completed yet," Kuroda said in an interview.
He declined to give details on when drilling could begin, but media reported it would start this year.
Azadegan, estimated to hold the world's second-biggest single oil reserve at 26 billion barrels, is located near the Iraq border and 86 per cent of the area has been cleared, he said.
Estimated to cost up to $1.7 billion, according to Asahi newspaper, it is one of the biggest foreign investments in Iran.
Inpex, 36 per cent-owned by the Japanese government and with a modest production portfolio concentrated in Indonesia, was thrust into the spotlight in February 2004 when it agreed with Iran to develop Azadegan despite opposition from the US.
An Iranian government official said at the time the agreement was announced that plans were for southern Azadegan to pump 150,000 barrels per day (bpd) by mid-2008 and reach 260,000 bpd by early 2012.
