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Oil & Gas

Saudi Arabia and Chevron extend operating agreement 30 years

September 11, 2008
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The Business Wire reports that Chevron Corporation has announced the extension and amendment of its agreement with the Kingdom of Saudi Arabia. This agreement grants Chevron the right to operate on behalf of the Saudi government for its 50 percent undivided interest in the petroleum resources of the onshore area of the Partitioned Neutral Zone (PNZ) between the Kingdom and the State of Kuwait. The agreement extends the existing arrangement for 30 years, through February 19, 2039. Under the agreement, Saudi Arabian Chevron (SAC), a subsidiary of Chevron, will continue to explore for and produce crude oil and natural gas on behalf of the Kingdom in the onshore PNZ. The field operations are managed jointly by SAC and Kuwait Gulf Oil Company. Saudi Arabian Chevron and the Kuwait Gulf Oil Company, operator for Kuwait’s equal 50 percent undivided interest in the petroleum resources of the onshore PNZ, jointly operate four fields in the area – Wafra, South Umm Gudair, South Fuwaris and Humma – that produce mainly heavy crude from 10 reservoirs. Operations in the PNZ are managed by the Saudi Arabia/Partitioned Neutral Zone Strategic Business Unit of the Chevron Europe, Eurasia and Middle East Exploration and Production Co., one of four Chevron upstream operating companies.

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