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FINANCIAL NEWS
Kuwait signs 5-yr gas deal with Shell
18 Feb 2007
(MENAFN) A spokesman for Kuwait Oil Co (KOC) said that the state-owned firm has signed a five-year technical service contract with Shell to develop
difficult gas reserves discovered in 2006, Reuters reported.
Under the agreement Shell will provide the technical know-how and advanced technology to develop the fields of free or non-associated gas in northern Kuwait, according to the spokesman.
In March 2006, Kuwait announced the discovery of one trillion cubic meters (35 trillion cubic feet) of non-associated natural gas and immediately began work on the field.
The emirate currently produces around four million cubic meters (140 million cubic feet) a year of free gas, but it is behind its target and has been facing technical problems.
Kuwait, which sits on about 10 percent of global crude reserves, requires more gas to feed a planned new giant refinery and for other industrial use.
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