The Khafji and Hout oil fields in the neutral zone jointly operated by Kuwait and Saudi Arabia will resume production in 2019, Japan’s Toyo Engineering said, according to Pipeline Oil and Gas Magazine.
The Japanese firm announced that it had won its third renewal of the General Engineering Services Agreement from Al-Khafji Joint Operations (KJO), the venture through which the Gulf states operate the fields.
The agreement will extend Toyo Engineering’s work with KJO until 2023. The company will help develop project planning feasibility studies and FEED, as well as providing technical support.
“Maximum oil production rate of the fields is 350,000 barrels per day,” Toyo Engineering said in a statement. “Due to lower crude oil prices, the production of the oil fields was suspended at 2014. Because of [the] oil price recovery, KJO starts the preparation work to re-produce oil from the fields.”
On June 26, oil production in the Saudi-Kuwait neutral zone has stopped until an agreement is reached between the two sides, Kuwaiti oil minister Bakeet al-Rashidi stated, Kuwait News Agency (KUNA) reported.
Rashidi told the National Assembly that the halt was due to technical issues.
Kuwait and Saudi Arabia are currently discussing the issue, and production will resume as soon as an agreement is reached.