PNZ operations to resume

KUWAIT CITY, January 21, 2016 – Kuwait’s emir, Sheikh Sabah Al Ahmad Al Jaber Al Sabah, announced Thursday that development and exports would resume at fields in the Partitioned Neutral Zone operated jointly with Saudi Arabia.

The area contains multiple oilfields operated by companies associated with both Saudi Arabia and Kuwait. The Al Khafji field ceased operations in October 2014 due to compliance issues related to Saudi Arabia’s environmental standards. The state oil firm Saudi Aramco subsidiary AGOC and the Kuwait Gulf Oil company operate the field jointly through the Al Khafji Joint Operations joint venture. Prior to the halt in operations, Al Khafji produced 280,000- 300,000 bopd.


The Wafra oilfield, which ceased production in May 2015, is also shared by the two nations. The field produced around 220,000 bopd of Arabian Heavy crude before being shut down. Joint Operations, a venture composed of Chevron’s Saudi Arabian arm and Kuwait Gulf Oil Company, conducts operations at the field.

“No matter what happens, we don’t have a disagreement with Saudi Arabia and even if there is one, it will be resolved,” Al Rai periodical quoted Sheikh Sabah Al Ahmad Al Jaber Al Sabah as saying.  He did not outline the timetable or details regarding the restart of production at the fields.

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