Saudi approves Chevron oil extension

(Getty Images)

Saudi Arabia's cabinet authorised on Monday the extension of an oil concession held by US major Chevron in its Neutral Zone shared with Kuwait.

The concession is the only oil production agreement that survived the Saudi nationalisation of the oil industry in the 1970s.

The 60-year deal was first granted in 1949 to a company founded by US industrialist Jean Paul Getty, helping make him the richest man in the United States.

"The cabinet approved authorising... the petroleum and mineral resources minister to sign a project of agreement to extend and amend the Saudi Arabian government and Chevron Saudi Arabia [concession] at the neutral zone," Saudi state news agency SPA reported on Monday.

SPA gave no further details on the extension or amendment.

Saudi Arabia and Kuwait share the estimated 550,000 barrels per day (bpd) output from the Neutral Zone.

The zone is a region between Saudi Arabia and Kuwait that dates back to 1920s treaties to establish regional borders.

Chevron acquired the concession when it bought Texaco in 2001. Texaco had acquired it from Getty Oil in 1984.

Since the nationalisation of the Saudi oil industry, the world's largest oil reserves have been off limits to international oil companies. Saudi Arabia holds around 264 billion barrels, over a fifth of the world's proven reserves, and is the world's top oil exporter. (Reuters)

Print | Email | Discuss this article

| Share |

READERS' COMMENTS

Click here to post a comment

Add your Comment All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic. Arabian Business would like to point out that only comments relevant to the story will be published. Any containing personal insults or inappropriate language will not be approved.
Name *
Remember me on this computer
Email *	(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments
Enter the words above *
Please click post only once - your comment will not be published immediately.

MORE FROM ARABIANBUSINESS.COM