TEHRAN, Sept 2: Iran expects a $2 billion deal with Japan to develop its Azadegan oilfield to be finalised in the next two weeks after differences were overcome, a top energy official said on Saturday.

“There are no longer differences over the price and an understanding has been reached,” Iran’s representative to Opec, Hossein Kazempour Ardebili, told reporters on the sidelines of an energy conference.

“The leaders of the two countries now must approve the terms of a contract and I think the agreement will be finalised in the next two weeks.

“The Japanese firm Inpex, France’s Total and the National Iranian Oil Company will execute the project,” he added.

In February 2004, the two sides signed an agreement for development of the Islamic republic’s largest onshore oil field, with operations to start by March 2005.

But delays have been caused by wrangling over financial terms as well as by the slow pace of de-mining work in the area, which was heavily mined during the 1980-88 Iran-Iraq war.

Japan has also been under United STates pressure to abandon the deal as Washington seeks to ratchet up international pressure on Iran over its controversial nuclear programme.

—AFP