Kuwait and Saudi Arabia are negotiating to restart oil production from the jointly-operated fields in the Neutral Zone, according to Zawya.
Kuwait’s Deputy Foreign Minister, Khaled Al-Jarallah, said that “When the final deal about this zone is reached, the two countries will start discussing the resumption of the oil production.”
Restarting production from the Neutral Zone’s oil operations would be divided into phases over a few months. The output is anticipated to return to its full capacity before the deal is finalized.
The two countries had previously stopped production from the jointly run oilfields, Khafji and Wafra, in the Neutral Zone more than three years ago, cutting 500,000 barrels per day (b/d), which is 0.5% of the global oil supply.
Any surplus in oil production from the zone will be met by a supply cut from other fields in both Saudi Arabia and Kuwait as the countries are committed to their targets under OPEC+ agreement to reduce oil output.