• 6 minutes WTI @ 67.50, charts show $62.50 next
  • 14 minutes Saudi Fund Wants to Take Tesla Private?
  • 18 minutes California Solar Mandate Based on False Facts
  • 3 hours Starvation, horror in Venezuela
  • 3 hours Monsanto hit by $289 Million for cancerous weedkiller
  • 32 mins Anyone Worried About the Lira Dragging EVERYTHING Else Down?
  • 1 hour Oil prices---Tug of War: Sanctions vs. Trade War
  • 6 hours Why hydrogen economics is does not work
  • 2 hours Correlation does not equal causation, but they do tend to tango on occasion
  • 10 hours WTI @ 69.33 headed for $70s - $80s end of August
  • 10 hours WSJ *still* refuses to acknowledge U.S. Shale Oil industry's horrible economics and debts
  • 1 hour Russia retaliate: Our Response to U.S. Sanctions Will Be Precise And Painful
  • 15 hours What Turkey Sanctions Are Really About
  • 14 hours Saudi Production Cut or Demand Drop?
  • 12 hours Merkel, Putin to discuss Syria, Ukraine, Nord Stream 2
  • 8 hours Saudi Aramco IPO Seems Unlikely
Can China Afford To Slap Tariffs On U.S. Oil?

Can China Afford To Slap Tariffs On U.S. Oil?

China’s latest round of tariffs…

IEA: The World Needs More Diverse Cobalt Sources

IEA: The World Needs More Diverse Cobalt Sources

The International Energy Agency reported…

Kuwait And Saudi-Arabia To Step Up Oil Output Here With 500,000 bpd

Wafra Oil Field

Kuwaiti officials say that two oilfields shared with Saudi Arabia in a massive 6,000-square-kilometer neutral zone could resume production within a year.

Speaking at a crude oil summit held in London, the head of research at Kuwait Petroleum Company Abdulaziz Al Attar said commented on an agreement to restart the fields, noting: "It is very difficult to say when, but it is in the process (of restarting)…We hear production will come back... a month, maybe a year, but we don't know exactly when."

The two oilfields—onshore Wafra and offshore Khafji—are in the Partitioned Neutral Zone, which lies between Kuwait and Saudi Arabia. The Wafra oilfield has a reported production capacity of 200,000 barrels a day, while Khafji has a 300,000 bpd production capacity.

Related: Kuwait Plans To Ramp Up Oil Production By 44% Before 2020

Wafra was shut down in May 2015, while the Khafji field has been shut down since October 2014.

The offshore Khafji field was shut down largely due to a disagreement over the renewal of operating licenses, which had sparked a standoff between the two OPEC members.

Late March, Kuwaiti officials signaled both sides’ willingness to recommence operations at both fields.

Related: OPEC Is Dead, What’s Next?

The early stages of this restart will involve “small quantities, which would be increased taking into consideration environmental concerns,” before returning to normal levels, officials said.

The freeze in production at the Khafji oil field didn’t impact the Saudi economy, but took a toll on oil revenues in Kuwait. Unlike Saudi Arabia whose production capacity stands at 12.5 million barrels a day, Kuwait’s 3-million-bpd capacity was significantly affected by the field’s shut down.

A three-day strike by oil sector workers last month saw production temporarily reduced to a mere 1.1 million barrels a day.

By James Burgess of 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