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Our History 


It is with pride and a legacy of achievement, that AGOC acknowledges February 28 2010 as its tenth anniversary.
Please also refer to the President & CEO Message on this occasion.

Historical Background

The building of Al-Khafji started in 1960 (1380 AH) after the discovery of the Al-Khafji oil field by the Arabian-Japanese Oil Company. Following the flow of oil in commercial quantities at the outset of the year 1960, the Arabian Japanese Oil Company established a residential compound that was composed of 73 residential quarters, built on a total area of 28 hectares (69 acres) and provided with all the necessary utilities and road networks. With the expansion of oil exploration and drilling works in the region, the city gradually expanded, regularly keeping pace with the socio-economic development witnessed by the Kingdom in general. 


Historical Timeline

The Neutral Zone was established. Saudi Arabia and Kuwait announced their respective rights to the continental archipelago of Ra’s Al-Khafji, while the sea bed and underground resources remained equally shared.                                                         


The Arabian Oil Company (AOC) was formed in February and were Assigned concession rights obtained by the Japan Petroleum Trading Company from Saudi Arabia in December 1957 and later, directly from the State of Kuwait in July 1958. See also, 'History' on the KJO website.



The first successful exploratory well was drilled in July 1960; this was named Khafji Oil Field.                                                                                                 


The Hout Oil Field was discovered in June 1963. 



An agreement signed between Saudi Arabia and Kuwait, stipulated that the neutral zone is divided into two areas, provided that the underground resources will remain equally shared by both governments.    


The Lulu Oil Field was discovered in February 1967; Dorra was also discovered in the same year.                                                                          


The divided Neutral Zone agreement came into force as of June 1970.                                                                         


The Arabian Oil Company concession agreement with the Kingdom of Saudi Arabia was terminated on February 27, 2000.                                                                         



Aramco Gulf Operations Company (AGOC) commenced its activities on February 28, 2000. AGOC took over the Saudi Government share of oil production and other hydrocarbon products in the partitioned neutral zone, comprising four oil fields: Khafji, Hout, Lulu and Dorra.



On April 1, 2000 AGOC signed a Joint Petroleum Production Operations Agreement (JPPOA) with the Arabian Oil Company (AOC), which represented the Kuwait government.

The JPPOA facilitated formation of Joint Operations in the partitioned neutral zone. 


Another significant date for the Joint Operations occurred on January 5, 2003, when the Kuwait Gulf Oil Company commenced their role as representative for the State of Kuwait in the Divided Zone, following expiry of AOC’s concession agreement with the State of Kuwait on January 4, 2003. See also: KGOC website.                                                   


On February 28, 2010 AGOC achieved its tenth anniversary, a significant milestone in the history of oil and gas exploration and production in Al Khafji and the divided neutral zone.

On March 3, 2010 AGOC signed the Khafji Joint Operations Agreement (KJOA) with KGOC.