Azadegan, with an area about the size of Tokyo, is estimated to have reserves of 26 billion barrels making it one of the world's top four oil fields, according to Japanese Trade Ministry official Tetsuhiro Hosono.
A Japanese consortium led by government-affiliated oil exploration firm, INPEX Corp, sealed a deal in Iran this week to develop the oil field, located near the border with Iraq, after nearly four years of negotiations.
INPEX led the negotiations and has reportedly been looking for partners to develop and operate the oil field as Shell considers its involvement. Shell has yet to comment on its position.
An INPEX spokesman said Japan plans to import all the crude oil produced at Azadegan, which will start at 50,000 barrels per day (bpd) in 2007, before reaching 150,000 bpd in 2008 and a full flow of 260,000 bpd by early 2012.
Japan has been juggling its desire to strike a deal with a major Middle East producer against US pressure to wait amid concerns in Washington that Tehran is developing nuclear weapons.
