Japan retains drilling rights in Kuwait’s Khafji offshore field
Japan’s Arabian Oil Company (AOC) will continue to tap Kuwait’s Khafji offshore oilfield, under a technical service contract finally endorsed by the Gulf Emirate's Supreme Petroleum Council (SPC). The deal replaces a concession agreement, set to expire January 4, 2003, reported Kyodo News .
The Khafji oilfield, whose output reaches 270,000 barrels of crude oil per day, is located in the Neutral Zone, an offshore area divided between Kuwait and Saudi Arabia. The Tokyo-based oil producer has been conducting petroleum operations in the zone since the 1960s. In February 2000, the company lost concession rights to the Saudi portion and is since jointly exploring the zoned with Saudi Arabia’s Aramco Gulf Operations Company (AGOC).
Earlier this year, AOC managed to secure a "basic principles" agreement with the Kuwaiti government, allowing the Japanese company to undertake oil production on a commission basis. AOC also gained the right to buy a minimum of 100,000 barrels of crude oil a day from Kuwait over a 20-year period and to provide technical services for an initial five-year period. — (menareport.com)
© 2002 Mena Report (www.menareport.com)