Kuwaiti Oil Minister Adel al-Subaih said Tuesday that a new contract being drafted for Arabian Oil Co. will give the Japanese firm the rights to operate but not to own the concession to its oil fields.
Renewing drilling rights in Kuwait has become crucial for the Tokyo-based oil firm because it lost similar rights in Saudi Arabia in February 2000.
Kuwait hopes to strike a deal with Arabian Oil but is prepared to exercise the option of drilling the oil fields on its own if negotiations collapse, al-Subaih said.
Speaking to reporters in Vienna on the sidelines of a meeting of the Organization of Petroleum Exporting Countries, the Kuwaiti minister said the new contract would be completely different in form from the current one, which expires in January 2003.