Wednesday, Dec 14, 2011
BEIRUT (Zawya Dow Jones)--State-run Kuwait Oil Co., or KOC, has frozen talks with U.S. oil giant Exxon Mobil Corp. (XOM) that were aiming to develop heavy oil fields in the northern region of the Arab Gulf state, Kuwait-based Al Anba daily reports Wednesday, citing unnamed executives.
The move comes after strong objections by Kuwait authorities on the way KOC formulated a contract with Shell to develop local gas fields, the unnamed KOC executives told the paper.
KOC's aim from developing heavy oil fields is to boost its heavy oil production to 60,000 barrels a day in 2015 and 2016, and to between 250,000 and 300,000 barrels a day by 2030, the executives said according to the daily.
The talks with ExxonMobil had reached an advanced stage but the new developments and the formation of committees to investigate the contract with Shell prevented the completion of the negotiations, they told Al Anba. They added that their company's experience in heavy oil extraction is very limited and that it has never used the related technology but it has only developed light oils.
Newspaper website: http://www.alanba.com.kw/AbsoluteNMNEW/templates/economy2010.aspx?articleid=250164&zoneid=17&m=0
-By Beirut Bureau, Zawya Dow Jones; +961-1-985 757; BeirutZDJ@zawya.com
Copyright (c) 2011 Dow Jones & Co.
(END) Dow Jones Newswires
14-12-11 0448GMT
