Chevron's Saudi Texaco unit objects to new Kuwait refinery - report.

(From AFX UK (Focus))

KUWAIT CITY (AFX) - Saudi Arabian Texaco, the Chevron Corp subsidiary which operates the partitioned neutral zone with Kuwait, has objected to the site of a huge new Kuwaiti oil refinery, Al-Qabas newspaper reported Sunday.

The head of Texaco Ahmad al-Omar wrote to Kuwait municipality, which made the site allocation to the national refinery company, saying the site violated a concession agreement signed some 50 years ago, the paper said.

The one-square-kilometre site at Al-Zour port is some 100 km south of Kuwait City and on the border with Saudi Arabia.

Omar said the port, called Saud Port by Riyadh, is part of the area reserved for the Texaco operations based on a concession agreement signed in 1954.

The allocation of the site also violates the Saudi-Kuwaiti agreement of 1965 that partitioned the neutral zone, the daily quoted Omar as saying.

Al-Zour port is on the Kuwaiti side of the zone.