Kuwait, Saudi Arabia Set to Resume Production at the Neutral Zone

Kuwait, Saudi Arabia Set to Resume Production at the Neutral Zone
KUWAIT – JANUARY 15: A derek pumps in a oil field January 15, 2003 near the Saudi Arabian border, Kuwait. Kuwait produces 10% of the worlds oil and has promised to increase production as needed in the event of a war in Iraq. (Photo by Joe Raedle/Getty Images)

Kuwait and Saudi Arabia have plans in place to resume oil production at jointly-operated Khafji and Wafra oilfields on July 1, according to Reuters.

Khafji’s oil field, which was halted for a month so as to comply with the June OPEC+ production cuts,  is expected to be about 80,000 barrels per day (bbl/d) on resumption. However, Abdullah Al-Shammari, deputy chief executive for finance and management at Kuwait Gulf Oil Company (KGOC), maintained that production will increase to 100,000 bbl/d after two months of production.  

Furthermore, Al-Shammari added that production is expected to reach 175,000 bbl/dd from Khafji field by end of the year, he added.

With regards to the Wafra field, production will start on July 1, with an initial output of 10,000 bbl/d. By August it will rise to 70,000 bbl/d, and then further increase to 145,000 bbl/dd by the end of 2020, said Al-Shammari.

Khafji and Wafra are located in the Neutral Zone on the boundary of the two countries. Wafra oilfield is operated by a joint venture between Saudi Arabian Chevron (SAC) and KGOC.


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