• 5 minutes Drone attacks cause fire at two Saudi Aramco facilities, blaze now under control
  • 7 minutes China Faces Economic Collapse
  • 11 minutes Oil Production Growth In U.S. Grinds To A Halt
  • 13 minutes Iran in the world market
  • 15 minutes Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 17 minutes Experts review Saudi damage photos. Say Said is need to do a lot of explaining.
  • 11 mins Let's shut down dissent like The Conversation in Australia
  • 7 hours Saudis Confirm a Cruise Missile from Iranian Origin
  • 2 hours Who Benefits From The "Iran Attacked Saudi Arabia" Narrative?
  • 1 hour Pompeo: Aramco Attacks Are An "Act Of War" By Iran
  • 15 hours Is It Time To Invest In Offshore Drillers?
  • 12 hours Trump Will Win In 2020 And Beyond..?
  • 17 hours Trump new National Security Advisor. Trump easily manipulated.
  • 10 hours Democrats and Gun Views
  • 22 hours Aramco Production
  • 18 hours The Spy Money: U.S. Wants To Seize All Money Edward Snowden Makes From New Book
  • 15 hours Yawn... Parliament Poised to Force Brexit Delay Until Jan. 31
All Eyes Are Off Venezuela

All Eyes Are Off Venezuela

The current situation in the…

Al-Falih Sees Saudi-Kuwait Deal To Resume Neutral Zone Oil Output This Year

Al-Falih

Saudi Arabia expects that it can reach a deal with Kuwait to resume oil production from joint oil fields in the so-called Neutral Zone this year, Saudi Arabia’s Energy Minister Khalid al-Falih said on Wednesday.

“We hope in 2019 it will be resolved,” Reuters quoted al-Falih as saying a day after meeting with the Emir of Kuwait, Sheikh Sabah al-Ahmad al-Jaber al-Sabah.

The so-called Partitioned Neutral Zone (PNZ) was established between Saudi Arabia and Kuwait in 1922 to settle a territorial dispute between the two countries. As of 2015, the oil production capacity in the neutral zone stood at 600,000 bpd, equally divided between Kuwait and Saudi Arabia, according to the EIA. Production from the zone averaged around 500,000 bpd just before the shutdown of the two oil fields, Khafji and Wafra, in 2014-2015.

As of October 2018, operational divergences and geopolitical divisions were still preventing Saudi Arabia and Kuwait from making any progress in talks about the potential restart of the jointly operated oil fields that analysts were hoping could soon add 500,000 bpd of oil production in the Middle East.

A few weeks before that, at the end of September 2018, Saudi Arabia’s Crown Prince Mohammed bin Salman discussed the restart of crude oil production in the neutral zone during a meeting with Kuwait’s Emir. The Saudi Crown Prince’s visit to Kuwait, however, was cut short, while big divergences between the two sides remained.

In December 2018, The Wall Street Journal reported that Saudi Arabia and Kuwait were inching closer to restarting oil production in the Neutral

Zone after the United States had intervened to broker a deal between the two countries. Production could restart in the first quarter this year, the Journal reported two months ago, citing oil officials familiar with the negotiations. The resumption of production from those fields and the potential adding of 500,000 bpd production capacity in the Middle East could alleviate concerns about tightening supply as the U.S. mulls over phasing out the waivers it had granted to key Iranian oil buyers, according to The Journal.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play