With the active backing of the Japanese government, the desperate oil provider is trying to convince Saudi Arabia to extend its concession, which will expire at the end of February. Because talks held over the last few years have been unsuccessful and have left the key sticking point unresolved, the looming deadline has made Tokyo increasingly nervous. Ironically, the Saudi government owns 10.9 percent of Arabian Oil. The Kuwait Petroleum Corp. has an identical stake. They are the company's largest shareholders.
Japanese sources claim that the project is unlikely to be profitable.
Thus, Tokyo has balked at the quid pro quo, saying that it cannot justify spending taxpayers' money on such an expensive and financially questionable venture. The Ministry of International Trade and Industry began to backpedal soon after, as Riyadh continued to insist on the trade-off. Arabian Oil then stepped in to try its hand at ending the deadlock. The money would be used to improve the working environment around the firm's drilling sites and to support new natural gas projects. Another government-affiliated business, Japan National Oil Corp., would act as guarantor.