#Kuwait Sees Neutral Zone Oil Pact With Saudis Within 45 Days - Bloomberg

Kuwait Sees Neutral Zone Oil Pact With Saudis Within 45 Days - Bloomberg:

Kuwait expects to sign an agreement with Saudi Arabia to restart oil production from the neutral zone along their border within 30 to 45 days, according to a person familiar with the matter.

The pact, reached after months of intensive negotiations, won’t be final until it’s signed, the person said, asking not to be identified as the talks are private. Khafji, one of two fields in the zone, can start production immediately, while the Wafra field will need three to six months, the person said.

The neutral zone, which has been shuttered for at least four years, can produce as much as 500,000 barrels a day. Negotiations continue with the Kuwaiti authorities, but even if production resumes, the area would not add oil to global markets because both countries adhere to output limits that OPEC has extended into early 2020, according to a person familiar with Saudi thinking.