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Saudi Arabia, Kuwait agree Neutral Zone production sharing

Saudi Arabia, Kuwait agree Neutral Zone production sharing
Fields in the zone could produce around 500,000 barrels per day

Mubasher: Saudi Arabia and Kuwait have signed agreements on sharing crude oil production in the Neutral Zone, Kuwait News Agency (KUNA) reports.

Production in the 5,770-kilometer zone has been halted for more than four years.

Fields in the zone could produce around 500,000 barrels per day (b/d), around 0.5% of the global oil supply.

Khafji, one of the zone’s jointly-operated fields, is expected to resume output immediately, while the Wafra field could take around three to six months before it returns to production, according to Bloomberg.

Negotiations have been going on for several months. Furthermore, the Saudi government vowed earlier to solve the issue before the end of 2019.