Kuwait’s Neutral Zone Oil Production to Reach 250,000 BBL/D

Kuwait’s Neutral Zone Oil Production to Reach 250,000 BBL/D
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)

The Kuwaiti production of crude oil from the Neutral Zone shared with Saudi Arabia is expected to reach around 250,000 barrels per day (bbl/d) after re-commencing operations by the end of 2020, according to Khaled Al-Fadhel, Kuwait’s Minister of Oil, Reuters reported.

In December 2019, the two countries succeeded in ending the five-year dispute over the Neutral Zone. They agreed on sharing the zone’s production in order to sustain their needs. It is worth remarking that the total output of the zone before this dispute was approximately 500,000 bbl/d.

“Signing the memorandum of understanding means the return of production of 250,000 bbl/d…before the end of 2020,” Al-Fadhel said in a parliament session.

Additionally, the Neutral Zone agreement will enable Kuwait to develop its shares of the Dorra gas field to produce 500 million cubic meters of natural gas per day (mmcm/d), which will help boost the country’s natural gas and crude oil reserves, Al-Fadhel pointed out.

 

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