Veteran energy company Arabian Oil Co. is to pull out of resource development and offload operations at oil fields in Norway and Egypt to JX Nippon Oil & Gas Exploration Corp., in a restructuring and subsequent share buy-out.
Parent company AOC Holdings Inc. said Dec. 27 it would break up Arabian oil and transfer some assets to a new company by about April 2013, and then sell all shares in that new company to JX Nippon.
Arabian Oil suffered operating difficulties at its oil fields in Norway and Egypt, a major reason behind its decision to end resource development for good.
AOC Holdings will retain the 80 or so staff at the two sites by shifting them to the new company.
It is additionally considering selling the rights to the fields.
Arabian Oil has been developing oil fields since 1960, when Taro Yamashita discovered the Khafji oil field in the Persian Gulf off the coast of Saudi Arabia and Kuwait.
It will continue to exist--as an importer of petroleum from Kuwait.
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