Saudi Arabia, Kuwait to Resume Production at Khafji Offshore Oilfield

Saudi Arabia, Kuwait to Resume Production at Khafji Offshore Oilfield

Saudi Arabia and Kuwait have reached a deal to resume production at the disputed Khafji offshore oilfield, Kuwait’s acting Oil Minister, Anas Al-Saleh, said, according to the Kuwait Times. “An agreement has been reached with the Saudi side at Aramco to resume production at Khafji field in small quantities,” Anas Al-Saleh told press.

It is not clear when production will resume or how much oil will be pumped. Acting Oil Minister added that the quantities will increase gradually after resolving environmental issues over which the field was shut down.

A number of maintenance contracts have been signed in preparation for the resumption of production.

According to Reuters, the Khafji field was shut in October 2014 for environmental reasons, having been producing between 280,000b/d and 300,000b/d. It is operated by Al-Khafji Joint Operations Co, a joint venture between AGOC, a subsidiary of state oil firm Saudi Aramco, and Kuwait Gulf Oil Co.

As Oil&Gas Journal informed, the Kuwait News Agency (KUNA) had reported that Saudi Arabia and Kuwait are expected to attend the April 17th meeting in Qatar of major oil producers, members of the Organization of Petroleum Exporting Countries, as well as non-OPEC members, to discuss a proposed production freeze at January levels.


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