• 2 minutes Rational analysis of CV19 from Harvard Medical School
  • 4 minutes While U.S. Pipelines Are Under Siege, China Streamlines Its Oil and Gas Network
  • 7 minutes Renewables Overtake Coal, But Lag Far Behind Oil And Natural Gas
  • 9 hours Joe Biden the "Archie Bunker" of the left selects Kamala Harris for VP . . . . . . Does she help the campaign ?
  • 2 hours Tesla Begins Construction Of World’s Largest Energy Storage Facility
  • 16 hours Trump Hands Putin Major Geopolitical Victory
  • 1 hour America Could Go Fully Electric Right Now
  • 10 hours Those Nasty White People and Camping Racism
  • 1 min Will any journalist have the balls to ask Kamala if she supports Wall Street "Carried Interest" Tax Loophole
  • 4 hours In 1,267 days, Trump has made 20,055 false or misleading claims
  • 5 hours COVID&life and Vicious Circle: "Working From Home Is Not Panacea For Virus"
  • 6 mins Candidate Biden refuses to answer questions and hides from public. If u could, what questions would you ask him
  • 41 mins Buying votes is cool now.
  • 12 hours The Truth about Chinese and Indian Engineering
  • 21 hours Brent above $45. Holding breath for $50??
  • 1 day Oil Tanker Runs Aground in Mauritius - Oil Spill
  • 2 days China wields coronavirus to nationalize American-owned carmaker
  • 2 days Open letter from Politico about US-russian relations
Oil Prices Leap Higher On Bullish Inventory Data

Oil Prices Leap Higher On Bullish Inventory Data

Crude oil prices got another…

China’s Crude Oil Imports Drop From Record Highs

China’s Crude Oil Imports Drop From Record Highs

China’s crude oil imports are…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Saudi Arabia And Kuwait Halt Production At Giant Joint Oil Field

Saudi Arabia and Kuwait will suspend production at the Al-Khafji field, which they operate jointly, during June, Reuters reports, quoting Kuwaiti media.

Al-Khafji is one of four offshore and one onshore field located in the neutral zone between Saudi Arabia and Kuwait. Of these, just two fields—Al-Khafji and Wafra—pumped half a million barrels daily until 2015. Operational differences and a worsening in bilateral relations led to the suspension of production during that year. The worsening came as Saudi Arabia renewed Chevron’s concession for Wafra. According to the Kuwaiti side, Riyadh did that without consulting it.

Then, in 2018, the two began negotiating the restart of the fields in the partitioned area as oil priced climbed steadily and U.S. President Donald Trump called on his Gulf allies to keep a lid on them. Indeed production restarted a few months ago, just before the coronavirus crisis began shaping up as possibly the biggest oil price crusher in history.

Al-Khafji was pumping 300,000 bpd until 2015 when production in the neutral zone was suspended and plans were to ramp this up to 325,000 bpd by the end of this year. At the time when the memorandum on the restarting of the fields was signed, there was worry this production will come on top of existing one in both Saudi Arabia and Kuwait but experts noted both countries were sticking to their production quotas under the OPEC+ agreement and the neutral zone fields will not add excess oil to their totals.

At the time, Saudi Arabia was producing about 10 million bpd of crude and Kuwait was pumping some 3 million bpd. Output from the neutral zone could have added half a million bpd to their combined total had the two not cut production at other fields. Saudi Arabia also earlier this month said it would cut an additional 1 million bpd from its total output to accelerate the recovery in oil prices.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News