Tokyo-based Arabian Oil Co. has agreed with the Kuwaiti government to the principles of operation regarding its continued drilling in the Kuwait-controlled portion of the Khafji oil field, the Ministry of Economy, Trade and Industry said Tuesday.
The agreement, signed Monday in Kuwait between Arabian Oil President Keiichi Konaga and Kuwaiti Oil Minister Adel Khaled al-Subeih, paves the way for the state-backed oil developer and the Kuwaiti government to negotiate three new contracts that will allow the Japanese company to continue drilling for oil after its drilling concession expires on Jan. 4, 2003.
The three new contracts will cover Arabian Oil's technical services to Kuwait, oil supply to Japan, and Arabian Oil's loans to Kuwait in upgrading oil-related facilities, a ministry official said.