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Chevron negotiates 30 year extension on Saudi agreement

01 October 2008

An agreement between Chevron and Saudi Arabia allows the energy company to continue operations in the Partitioned Neutral Zone (PNZ) between Saudi Arabia and Kuwait, until 2039.

Saudi Arabian Chevron (SAC) and Kuwait Gulf Oil Company will jointly manage four fields in the area - Wafra, South Umm Gudair, South Fuwaris and Humma.

Chevron will continue to develop the petroleum industry, exploring for, and producing crude oil and natural gas on behalf of Saudi Arabia. Benefits of this will be seen regionally as well as worldwide, with much-needed energy being produced and exported to world markets.

This agreement will assist the development of the PNZ, allowing it to reach its full potential responsibly.

Of particular interest is the possibility of developing steam flood technology, in addition to other innovative technologies in an attempt to grow recoverable reserves and create jobs within the region. It will be the first time that this enhanced oil recovery technology has been employed commercially.


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