As per a report from Saudi-owned al-Arabiya TV, the Kingdom’s Khafji oil field, which is jointly operated with Kuwait, will produce 320,000 oil barrels per day (bpd) by the end of 2020.
The announcement by was made by Prince Abdulaziz bin Salman at the Khafji oil field complex in Saudi Arabia, a day after signing a deal with Kuwait which signaled the end of a dispute over the partitioned Neutral Zone that is shared by them both.
Production at the jointly run Khafji and Wafra fields, came to a grinding halt, for more than five years following a dispute by both OPEC members. Production is also scheduled to resume at the Wafra oil field. The production from both oil fields, before their shutdown, was 500,000 bpd, equivalent to 0.5% of the world’s oil supply.
“With the signing of this new accord, both parties have reached consensus that now is the right time to resume production in this zone,” said Saudi Aramco President and Chief Executive Amin Nasser in a statement.
Khafji is operated by AGOC, a subsidiary of Aramco, and Kuwait’s Gulf Oil Company.
In a statement, both Saudi Arabia and Kuwait stated, the resumption of oil production at the Neutral Zone will not affect their commitments to a deal on curbing oil supplies reached between the Organization of the Petroleum Exporting Countries (OPEC) and other producers, including Russia.
Oil production in the Neutral Zone is divided equally between Saudi Arabia and Kuwait and is subject to treaties which date back to treaties signed in the 1920s related to their mutual borders.