TOKYO Sep 15, 2006 (Dow Jones Newswires from the Wall Street Journal)
AOC Holdings Inc. (5017.TO) said Friday that unit Arabian Oil Co. has discovered off the coast of Egypt oil reserves that will enable the production of 4,900 barrels a day, The Nihon Keizai Shimbun reported in its Saturday morning edition.
Arabian Oil has been exploring the Northwest October Block in the Gulf of Suez since late April. The find in the oil field, to which the company is the sole rights holder, was made 1,700 meters to 1,900 meters below the seabed. The firm had spent Y2.8 billion on the prospecting efforts that led to the discovery of the deposit of heavy crude oil.
Arabian Oil now plans to test-drill other sections of the oil field by the end of March to assess the size of the oil layer.
The company aims to set up an oil pipeline within fiscal 2007 to begin production in fiscal 2008.
Arabian Oil acquired the rights to the Northwest October Block in February 2005 through a tender.
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