Saudi Arabia and Kuwait start production in the huge oil field

Saudi Arabia and Kuwait have resumed production in the Al-Khafji oil field in the neutral zone between the two countries, Turkey's Anadolu Agency reported, the executive CEO of the Kuwait Gulf Oil Company cited a statement.

The company's official Twitter account yesterday (via Google Translate) posted an update, "Congratulations on the opportunity to resume production at United Majority Operations."

An earlier Argus News report from late June stated that Saudi Arabia and Kuwait had plans to restart both oil fields in neutral zones Al-Khafji and Wafra this month.

Al-Khafji is an offshore area located four offshore and one in a neutral zone between Saudi Arabia and Kuwait. Of these, only two regions — Al-Khafji and Wafra — pump half a million barrels a day by 2015.

Production was halted during that year due to operational differences and a deterioration in bilateral relations. Saudi Arabia renewed Chevron's concession to Vafra. According to the Kuwait side, Riyadh did this without consulting them.

Negotiations resumed on the resumption of farms in 2018, and Wafra and Al-Khafji began producing oil again in late 2019. However, in May, Kuwaiti media reported that production in Al-Khafji would be suspended under the OPEC + agreement in June. To curb the global supply of crude oil by 9.7 million BPD in May and June.

The news of the restart is somewhat surprising, however, after OPEC + agreed to extend deep cuts by the end of July as prices did not respond favourably to the cuts expected of OPEC+ expected.

Al-Khafji was producing around 300,000 BPD by the year 2015 when a generation of resource in the impartial zone was cancelled, and there were plans to ramp up to 325,000 BPD by the end of this year. Wafra has a production capacity of 250,000 BPD of crude oil.

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