Kuwaiti-Saudi agreement to resume oil production from the divided region
Economy News - Baghdad
Kuwait and Saudi Arabia have agreed to resume oil production from the divided region, Kuwaiti newspapers Al-Qabas and Al-Rai reported, citing unnamed sources.
The closure of the fields divided between the two countries, mainly the fields of Khafji and Wafra, was a political issue between the two allies and senior officials have been trying to resolve the matter for months.
The divided zone covers an area of 5,770 square kilometers on the border between Saudi Arabia and Kuwait, which was not included in the 1922 border.
The two countries cut production from the two fields of Al-Khafji and Wafra in the region more than four years ago, which cut about 500 thousand barrels per day, equivalent to 0.5 percent of global oil supply.
Reuters could not verify the reports. Kuwaiti and Saudi officials did not respond to requests for comment.
Government and oil officials representing the two countries met on Thursday and signed an agreement, Al Qabas said. Al-Rai said the two sides had signed a "historic" agreement, without giving further details.
Al-Qabas said that production from the Khafji field will return soon after completion of some procedures, and will resume production of abundance within three months.
The production of the divided zone is divided equally between Saudi Arabia and Kuwait.
The Khafji field is operated by Saudi Aramco and Kuwait Gulf Oil through a joint venture. It was decided to close in October 2014 for environmental reasons and its production capacity before the closure was between 280 and 300 thousand barrels per day.
Wafra is run by state-run Kuwait Gulf Oil Company and Chevron on behalf of Saudi Arabia. The field has been closed since May 2015 due to operational problems. Its production capacity was about 220,000 barrels per day of heavy Arab crude.