Inpex says Iranian oil contract in force

TOKYO, May 28 (UPI) -- Inpex Corp. has not been informed its February 2004 contract to develop a major oil field in Iran has been terminated, Japanese government officials said.

The government-linked company was to develop the Azadegan oil field with Iranian partners, said Economy, Trade and Industry Minister Toshihiro Nikai.

Nikai said he believed land mine removal was slowing the project, the Japan Times reported.

The contract specified that development of the oil field should start within 2 1/2 years. The terms stated the contract would be "terminated automatically" if the deadline passed, Mehdi Bazaargan, managing director of Petroleum Engineering & Development Co. told Kyodo News.

Petroleum Engineering & Development Co. is a subsidiary of National Iranian Oil Co.

Bazaargan said the contract would not be extended. He said Inpex has been pressuring the Iranian firm to increase its investment on the project and mines are not at issue.

  The exact details of the contract are a trade secret, the Japan Times reported.