Ras Al Khafji (Arabic: رأس الخفجي‎ Raʾs al-Ḫafğī) or Khafji (الخفجي) is a town on the border between Saudi Arabia and Kuwait. It lies in what was before 1970 the Saudi–Kuwaiti neutral zone. The Japanese-owned Arabian Oil Company Ltd signed a concession agreement with the government of Saudi Arabia in December 1957 and with the government of Kuwait in July 1958 for exploration and development of hydrocarbon reserves in the offshore Neutral Zone.