Kuwait agrees to extend Arabian Oil's concession for Khafji field

By an OGJ Online Correspondent

TOKYO, Dec. 13 -- Japan's Arabian Oil Co. has signed a memorandum of understanding with the Kuwaiti government that would allow it to keep exploring Khafji oil field beyond the January 2003 expiration date.

A final agreement is expected by Jan. 29.

The field straddles the border of Saudi Arabia and Kuwait. Arabian Oil lost the concession rights to the Saudi Arabian side of the field in February 2000.

Japan, heavily dependent on imported crude from the Middle East, has been trying to maintain a strong foothold in overseas oil-producing basins, especially the Middle East, since last year.

Arabian Oil is Japan's largest crude producer.