• 3 minutes Is Pete Buttigieg emerging as the most likely challenger to Trump?
  • 5 minutes Can LNG Kill Oil?
  • 8 minutes Question: Why are oil futures so low through 2020?
  • 11 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 2 hours “The era of cheap & abundant energy is long gone. Money supply & debt have grown faster than real economy. Debt saturation is now a real risk, requiring a global scale reset.”"We are now in new era of expensive unconventional energy
  • 24 mins CoV-19: China, WHO, myth vs fact
  • 15 hours Question - What if there are no buyers for Chevron's Appalachia Assets?
  • 5 hours Blowout videos
  • 7 mins Democrats Plan "B" Bloomberg Implodes. Plan "C" = John Kerry ?
  • 1 day OIL trades as if the virus is a 1 quarter event. As if it's Containable, Reversible and Temporary. Is it ?
  • 11 hours Natural Gas
  • 1 day Energy from thin air?
  • 3 hours US Shale: Technology
  • 14 hours Cheap natural gas is making it very hard to go green
  • 1 day Coronovairus, Phase One Agreement, Lower for Longer
  • 2 days Hey NYC - Mayor De Blasio declares you must say goodbye to fossil fuels. Get ready to freeze your Virtue Signaling butts off.

Kuwait Expects To Pump 250,000 Bpd When Neutral Zone Restarts

Flaring

Kuwait expects its share of the oil production from the Neutral Zone that it shares with Saudi Arabia to be 250,000 bpd by the end of 2020 when production will have resumed after half a decade of hiatus because of a dispute.

At the end of 2019, neighbors Saudi Arabia and Kuwait reached an agreement to resume oil production from the two oilfields they share in the Neutral Zone.

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.

Operational differences and a worsening in bilateral relations led to the suspension of production back in 2015. The worsening came as Saudi Arabia renewed Chevron’s concession for Wafra. According to the Kuwaiti side, Riyadh did that without consulting it.

The two neighbors now have agreed to restart the two oilfields, which could put an additional 500,000 bpd-600,000 bpd on the oil market.

“Signing the Memorandum of Understanding means the return of production of 250,000 bpd...before the end of 2020,” Reuters quoted Kuwait’s Oil Minister Khaled al-Fadhel as telling Parliament on Thursday. 

According to the minister, the 250,000-bpd additional production capacity from the shared Neutral Zone will not impact Kuwait’s compliance with the ongoing OPEC+ production cuts. OPEC and its Russia-led allies are set to review the current pact in March this year.

Kuwait has been strictly complying with its share of the cuts, while Saudi Arabia has been going the extra mile every month and has cut much more than it had promised to.  

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