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Japan-based Toyo Engineering Corp said on Monday that Khafji and Hout oilfields in fields jointly operated by Saudi Arabia and Kuwait in the Neutral Zone will resume output in 2019.
Toyo said it won a third renewal of general engineering services agreement (GESA) from Al-Khafji Joint Operations (KJO), under which the two nations jointly operate Khafji and Hout Oil Fields.
Following the renewal, Toyo said it is scheduled to support KJO until 2023 on project planning feasibility study, FEED and technical support.
“Due to lower crude oil prices, the production of the oil fields was suspended in 2014. Because of oil price recovery, KJO starts the preparation work to re-produce the oil from the fields from 2019,” the Japanese firm said in a statement.
The maximum oil production rate of the fields is 350,000 barrels per day, it added.
Khafji and Hout oilfields were discovered and developed by Japanese Arabian Oil Company Ltd. (AOC) in 1960. From 1980, KJO has been established among AOC, Saudi Aramco and Kuwait Petroleum Company, the firm said.
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