Iran oil deal

JAPAN and Iran have signed a $2 billion agreement to develop a major oil field in south-western Iran, officials said.

The deal grants the Japanese consortium full development rights to the Azadegan oil field, which has estimated reserves of about 26 billion barrels and is believed to be one of the largest in the Middle East.

It could offer a key source of energy for resource-poor Japan, which is also pursuing similar arrangements in Russia and other countries.