The agreement between the two counties was signed on December 24, 2019. This agreement stipulates that the oil production in the two jointly-run fields, Khafji and Wafra, will resume production, and they are expected to pump up to 0.5% of the world’s oil supply. The two fields combined production is around 500,000 barrels per day (b/d).
Khaled Al-Fadhel, Kuwait’s Oil Minister, said that “the resumption of production at the Khafji and Wafra oilfields is not linked to the international commitments of Saudi Arabia and Kuwait.
The US oil company Chevron, which jointly operates the Wafra field with the Kuwait Gulf Oil Company (KGOC) on behalf of Saudi Arabia, said it expected it to return to full production within 12 months.
“We welcome the signing of a memorandum of understanding between the governments of Kingdom of Saudi Arabia and the State of Kuwait which will lead to a restart of production and operations in the Wafra Joint Operations,” Chevron said.