Saudi Arabia's energy minister said on Dec. 25 the Khafji oil field which is jointly operated with Kuwait would produce 320,000 oil barrels per day (bpd) at the end of 2020, Saudi-owned al-Arabiya TV reported.
Prince Abdulaziz bin Salman made the announcement at Khafji oil field complex in Saudi Arabia, a day after signing a deal with Kuwait that ended a dispute over the partitioned Neutral Zone that is shared by the two countries.
The two OPEC members halted production more than five years ago at Khafji and Wafra field, another jointly run field. Production is also resuming at Wafra. Output from both before the shutdown was 500,000 bpd, or about 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," Saudi Aramco President and Chief Executive Amin Nasser said in a statement.
He also attended the ceremony, alongside Kuwaiti Oil Minister Khaled al-Fadhel.
Khafji is operated by AGOC, a subsidiary of Aramco, and Kuwait's Gulf Oil Company.
The Saudi and Kuwaiti ministers said resuming oil production from the Neutral Zone would not affect their commitments to a deal on curbing supply reached between the Organization of the Petroleum Exporting Countries (OPEC) and other producers, including Russia, a group known as OPEC+.
Oil output in the Neutral Zone is divided equally between Saudi Arabia and Kuwait. The zone is subject to treaties dating back to the 1920s treaties related to their mutual borders.
2022-08-09 - Centrica will purchase Delfin Midstream's LNG as it looks to diversify its energy supplies in the wake of a drop in Russian gas flows to Europe.
2022-06-14 - The SPR release was meant to help control oil prices that spiked after Russia invaded Ukraine. However, oil prices have marched higher since the March 31 announcement.
2022-05-27 - Also on May 27, Iran summoned an envoy of Switzerland, which represents U.S. interests in Tehran, to protest against the Pegas oil seizure, the Iranian foreign ministry said.
2022-07-18 - The return of the turbine from Canada to the Russian Portovaya compressor station, a crucial element of Nord Stream, has been in focus for the past month since Russian energy producer Gazprom reduced gas supplies to Germany.
2022-07-25 - Kremlin spokesman Dmitry Peskov stopped short of saying gas supply would increase, noting that further Nord Stream 1 pipeline equipment needed to be repaired.