Arabian Oil Co. (AOC), Tokyo, and Japan National Oil Corp. (JNOC) have agreed to study feasibility of developing a supergiant field off the Neutral Zone between Kuwait and Saudi Arabia, Kyodo News Service reported.
The field, with reserves potential estimated at 4 billion bbl, is near Khafji and Hout oil fields, where AOC-owned by a Japanese group and the Saudi and Kuwait governments-produces about 250,000 b/d.
Development of the new area has been impeded by water depths of 1,200-1,350 m, AOC said.
Kyodo reported AOC and JNOC have been given a budget of 4 billion yen for the project, which is to take 5 years beginning in fiscal 1992.
Saudi Arabia and Kuwait have approved the study and both will assign research teams to it.
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