Japan's Inpex is holding negotiations with National Iranian Oil Company (NIOC) to develop Azadegan oilfield in southwestern Iran, a report said.

Inpex signed an agreement on the project last June and a final proposal is expected soon, managing director of Iran's Petroleum Engineering and Development Company Noureddin Shahnazizadeh  was quoted as saying in the Iran Daily report, which cited Kyodo News.

Inpex — which previously held a 75-percent stake in the project but pulled out in 2010 amid US sanctions on Iran — was the first foreign company to sign a memorandum last year on the oilfield which is one of the largest in the world.

Other companies which started proposals for the project include Total SA, Royal Dutch Shell PLC, Petroliam Nasional Bhd (Petronas) and China National Petroleum Corp.

"Inpex is one of the good names in the oil industry and as it has experience and data regarding Azadegan, it is one step ahead of its rivals and has a chance to win the Azadegan tender," Shahnazizadeh said.