Dubai: Saudi Arabia and Kuwait are expected to agree this month to resume oil production from the jointly operated oilfields in the Neutral Zone that lies between both countries, sources said yesterday.
The closure of the Neutral Zone’s fields, mainly Khafji and Wafra, has become a political sticking point between the two Gulf Opec allies and senior officials have been trying to resolve the issue for months.
Khafji was shut in October 2014 for environmental reasons and Wafra has been shut since May 2015 due to operating difficulties.
The restart would come at a sensitive time for the oil markets after Opec agreed last week to reduce output by around 1.2 million barrels per day (bpd) from January in a bid to reduce global oversupply and prop up prices.
The Khafji field had been producing 280,000 to 300,000 bpd until its closure.
The Wafra field has an output capacity of about 220,000 bpd of Arabian Heavy crude.