The Battle of Azadegan: Japan, Oil and Independence

By about 1999 the Japanese government began to seek closer relations with Teheran. In the following months and years, Japanese-Iranian relations began to accelerate quickly. When in February 2000 the Japanese-owned Arabian Oil Co. lost its long-term concession in Saudi Arabia’s Khafji oil field, Japanese officials began to consider Iran as a suitable alternative.

…It appears that Teheran is suggesting, cleverly, that if Japan goes cold on the Azadegan deal, then China will be happy to step in. This threat has already shaken up some Japanese business leaders, in part because it is quite credible. There is a distinct fear that China may become the ultimate beneficiary of Japan’s long efforts in Azadegan.

Japan Focus