Kuwait, Saudi to Resume Production From Khafji by Month-End - Bloomberg:
Kuwait and Saudi Arabia will resume oil production from a shared field by the end of this month, more than five years after a dispute halted supply.
The restart of the offshore Khafji field will bring additional production capacity to a market that’s already dealing with excess oil supply as the deadly coronavirus hits demand. The countries, which also authorized the resumption of the Wafra field in their shared Neutral Zone effective Sunday, have said the projects are unlikely to add significant amounts of crude within the duration of OPEC’s deal to curb output, which runs until the end of March.
The Neutral Zone’s oil fields can pump about 500,000 barrels a day -- more than the production of each of the three smallest members of the Organization of Petroleum Countries last month. Saudi Arabia and Kuwait reached an agreement in December to resume output in the barren strip of desert straddling their nations -- a relic of the time when European powers drew implausible ruler-straight borders across the Middle East.
Kuwait and Saudi Arabia will resume oil production from a shared field by the end of this month, more than five years after a dispute halted supply.
The restart of the offshore Khafji field will bring additional production capacity to a market that’s already dealing with excess oil supply as the deadly coronavirus hits demand. The countries, which also authorized the resumption of the Wafra field in their shared Neutral Zone effective Sunday, have said the projects are unlikely to add significant amounts of crude within the duration of OPEC’s deal to curb output, which runs until the end of March.
The Neutral Zone’s oil fields can pump about 500,000 barrels a day -- more than the production of each of the three smallest members of the Organization of Petroleum Countries last month. Saudi Arabia and Kuwait reached an agreement in December to resume output in the barren strip of desert straddling their nations -- a relic of the time when European powers drew implausible ruler-straight borders across the Middle East.
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