Saudi Arabia, Kuwait Cooperate to Restore Output in Neutral Zone

Saudi Arabia, Kuwait Cooperate to Restore Output in Neutral Zone

Saudi Arabia and Kuwait have discussed resuming crude oil production in jointly operated fields in the Neutral Zone, Kuwait News Agency (KUNA) reported.

The two countries “continue to discuss resuming of oil production in the Neutral Zone after settling all the technical issues from both sides,” said Kuwaiti Government Spokesman, Tariq Al-Mazram.

The output from the jointly run oilfields, namely Khafji and Wafra, was halted more than four years ago, cutting some 500,000 barrels per day (b/d).

The Wafra field is operated by state-run Kuwait Gulf Oil Company (KGOC) and Chevron on behalf of Saudi Arabia. The Khafji field is operated by Saudi Aramco and KGOC.

The two countries reportedly achieved significant progress in negotiations over resuming production from the two fields.

Saudi Arabia’s Energy Minister Khalid Al-Falih previously expected an agreement with Kuwait on resuming oil production from the neutral zone during 2019.

The Saudi–Kuwaiti Neutral Zone is an area of 5,770 square kilometers (km2) between the borders of Saudi Arabia and Kuwait that was left undefined when the border was established.

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