Sources say Saudi Chevron to shut down Kuwait fields

A Chevron unit is to shut oilfields jointly developed between Kuwait and Saudi Arabia on May 9, 2015, according to sources close to the matter. The move aligns with a failure of the involved parties to agree on alterations over the venture’s continuation.

Saudi Arabian Chevron has sent a letter to Kuwaiti officials settling a date to commence shut down of facilities at the Wafra onshore fields on Kuwait’s side of the border with Saudi Arabia, with employees then to withdraw, the sources – who have asked to remain anonymous due to the confidentiality of the information – were reported as saying.

“Current difficulties in securing work permits and materials may impact the company’s ability to safely continue production. Efforts continue with all appropriate parties to resolve the issue,” Sally Jones, Chevron spokeswoman in London, was reported as saying.

Operations at the Khafji offshore deposits, which also lie in the shared Saudi-Kuwaiti border zone, were halted on October 16, 2015, with environmental concerns attributed to the shut down. The Wafra and Khafji assets each have a production capacity of 250,000 barrels of oil per day.

 

Click here for more news and features from Saudi Arabia