Khafji and Hout oilfields in Kuwait’s jointly operated Neutral Zone with Saudi Arabia will resume output in 2019, Japan’s Toyo Engineering said.
The Japanese firm said it won a third renewal of General Engineering Services Agreement (GESA) from Al-Khafji Joint Operations (KJO), under which the two countries jointly operate Khafji and Hout oil fields.
By the renewal, Toyo Engineering said it is scheduled to support KJO until 2023 on project planning feasibility study, FEED and technical support
“Maximum oil production rate of the fields is 350,000 barrels per day,” Toyo Engineering said in a statement. “Due to lower crude oil prices, the production of the oil fields was suspended at 2014. Because of oil price recovery, KJO starts the preparation work to re-produce oil from the fields.”
KJO is a joint operation organisation set up since 1980 by Saudi Arabian Gulf Operations Company (AGOC) representing by Saudi Aramco, and Kuwait Gulf Oil Company (KGOC) representing by Kuwait Petroleum Company.
Khafji and Hout oil Fields were discovered and developed by Japanese Arabian Oil Company Ltd. in the 1960s.