THE ARABIAN OIL COMPANY GAINS A CONCESSION IN EGYPT

A month ago Shingetsu Newsletter No. 28 reported that Teikoku Oil had received a concession to prospect for oil in two separate regions in Egypt. Now it is being reported that another Japanese oil company, the Arabian Oil Company, received a concession on July 26th to produce oil in Egypt.

The new concession is located in Zone 2 (Northwest October Block), which is at about the halfway point of the Suez Canal. The field is expected to produce a daily output of 6,000 barrels beginning in late 2007.

It will be recalled that the Arabian Oil Company is Japan’s largest oil producer, and for many years operated the Khafji oil field in Saudi Arabia, until it lost its concession in 2000. In mid-June, Shingetsu Newsletter No. 15 reported that the Arabian Oil Company had signed a deal with the Iraqi government as well. It appears that the Arabian Oil Company is now moving aggressively to expand its presence in West Asia and North Africa. Further news from this company is expected in the future.

The Arabian Oil Company’s website can be viewed here:

http://www.aoc.co.jp/e/