Kuwait has said the continued closure of the Khafji oilfield it shares
with Saudi Arabia will create huge losses Riyadh must compensate
for in future, a local daily reported.
Al Rai newspaper based its report on a leaked letter written by
Kuwaiti oil minister Ali Al Omair to his Saudi counterpart Ali Al
Naimi. It quoted from the letter but did not reprint it in full. No date is mentioned.
“I urge your Excellency to take adequate measures to … resume
production at Khafji,” Omair wrote. “By keeping production and
exports shut, Kuwait will incur huge losses which will be borne by
the Saudi government for violation of the (50-year old) agreement
and the 2010 operations agreement.”
The field has been shut since October last year for non-compliance
with new Saudi environmental standards. It is operated by Al-Khafji
Joint Operations Co (KJO), a joint venture between AGOC, a
subsidiary of state oil firm Saudi Aramco, and Kuwait Gulf Oil Co
Following the report, the chief executive of Kuwait Gulf Oil Co
(KGOC) was quoted as saying on state news agency Kuna that
relations with Saudi Arabia wee solid and a committee will
investigates why the correspondence was leaked.
Before the closure, the Khafji field produced around 280,000 b/d to
Saudi Arabia and Kuwait also share the Wafra oilfield, which has
been shut since May due to operating difficulties. US oil major
Chevron operates the field on behalf of the Saudi government.
Source: Trade Arabia