• 4 minutes Trump will meet with executives in the energy industry to discuss the impact of COVID-19
  • 8 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 11 minutes Why Trump Is Right to Re-Open the Economy
  • 13 minutes Its going to be an oil bloodbath
  • 23 mins US Shale Resilience: Oil Industry Experts Say Shale Will Rise Again
  • 4 hours Marine based energy generation
  • 13 hours What If ‘We’d Adopted A More Conventional Response To This Epidemic?’
  • 1 hour While China was covering up Covid-19 it went on an international buying spree for ventilators and masks. From Jan 7th until the end of February China bought 2.2 Billion masks !
  • 3 hours China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind
  • 3 hours Real Death Toll In CCP Virus May Be 12X Official Toll
  • 21 hours Trafigura CEO Weir says, "We will see 30% to 35% drop in demand". That amounts to 35mm bbls/day glut ! OPEC+ 10 mm cut won't fix it. It's a DEMAND problem.
  • 24 hours The Most Annoying Person You Have Encountered During Lockdown
  • 1 hour Which producers will shut in first?
  • 9 hours TRUMP pushing Hydroxychloroquine + Zpak therapy forward despite FDA conservative approach. As he reasons, "What have we got to lose ?"
  • 22 hours Today 127 new cases in US, 99 in China, 778 in Italy
  • 1 day Cpt Lauren Dowsett

Breaking News:

This Emerging Economy Bets Big On Solar

Saudis, Kuwait Make Progress On Talks To Resume Oil Output In Neutral Zone

Riyadh

Two of OPEC’s heavyweights, Saudi Arabia and Kuwait, have recently made significant progress in their years-long talks about resolving a dispute over shared fields that can produce some 500,000 bpd, Bloomberg reported on Thursday, quoting people familiar with the issue.

The Saudis and Kuwait made a breakthrough in talks in Riyadh last month about settling some sovereignty issues in the so-called Neutral Zone, which could lead to an agreement about restarting oil production from the area, Bloomberg’s sources said.

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.

The two OPEC members are now drafting new documents preparing for a next meeting expected to be held in Kuwait as soon as this month, one of Bloomberg’s sources noted.

Earlier this year, Saudi Arabia’s Energy Minister Khalid al-Falih said that

Saudi Arabia expects that it could reach a deal with Kuwait to resume oil production from the Neutral Zone this year.

Even if the two sides reach an agreement on resuming production, it’s not clear how fast oil production could be restarted, how fast it could be ramped up, and how much the fields could collectively pump given the fact that it’s been five years since they were shut down.

As much as 500,000 bpd of additional oil output from the Middle East could help ease supply concerns in view of declining production in Iran and Venezuela and fighting in Libya, on the one hand. But these 500,000 bpd could add to the global inventory overhang that OPEC continues to try to eliminate by extending the production cuts into 2020, if oil demand further weakens in the absence of a U.S.-China trade deal and slowing global economy, on the other hand.   

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