RIYADH, July 14: Saudi Arabia’s cabinet authorised on Monday the extension of an oil concession held by US major Chevron in its Neutral Zone shared with Kuwait.

The concession is the only oil production agreement that survived the Saudi nationalisation of the oil industry in the 1970s.

“The cabinet approved authorising... the petroleum and mineral resources minister to sign a project of agreement to extend and amend the Saudi Arabian government and Chevron Saudi Arabia (concession) at the neutral zone,” Saudi state news agency SPA reported on Monday.

SPA gave no further details on the extension or amendment.

Saudi Arabia and Kuwait share the estimated 550,000 barrels per day (bpd) output from the Neutral Zone. The zone is a region between Saudi Arabia and Kuwait that dates back to 1920s treaties to establish regional borders.

Chevron acquired the concession when it bought Texaco in 2001. Texaco had acquired it from Getty Oil in 1984.

Since the nationalisation of the Saudi oil industry, the world’s largest oil reserves have been off limits to international oil companies. Saudi Arabia holds around 264 billion barrels, over a fifth of the world’s proven reserves, and is the world’s top oil exporter.

—Reuters