Japan's largest oil producer, Arabian Oil Co., has reached a basic agreement with Kuwait on extending its drilling rights in the Khafji oil field, the Ministry of Economy, Trade and Industry said Monday.
The basic agreement means Arabian Oil has cleared the first major hurdle for a new contract covering the Kuwaiti sector of the Khafji field; the company's current drilling concession is due to expire Jan. 4, 2003.
"Negotiations on principles between Arabian Oil and the Kuwaiti Oil Ministry ended in a satisfactory manner on Sept. 9 local time," a senior ministry official said. "Considerable progress was made and we welcome the progress."