Kuwait and Saudi Arabia struck a deal on Tuesday to resume production on shared oilfields after a spat around joint activities in the border area prompted the sides to halt output several years ago, Kuwait's official KUNA news agency reported
MOSCOW (Pakistan Point News / Sputnik - 24th December, 2019) Kuwait and Saudi Arabia struck a deal on Tuesday to resume production on shared oilfields after a spat around joint activities in the border area prompted the sides to halt output several years ago, Kuwait's official KUNA news agency reported.The sides signed an agreement to demarcate land and maritime borders in the area, dubbed the Neutral Zone, as well as a memorandum of understanding to revive production on oilfields.
Both Riyadh and Kuwait City have earlier said that the agreement will not affect their commitments as part of the OPEC+ oil output cut deal.
The two oilfields, Khafji and Wafra, used to jointly produce some 500,000 barrels per day before being shut down in October 2014 and May 2015 respectively. Back then, Riyadh cited environmental issues to justify Khafji's closure, while US oil company Chevron, which works on the Wafra oilfield on Saudis' behalf, named operating difficulties as the reason for suspending the activities in the area
