Kuwait minister says neutral zone output to reach 550,000 b/d by year-end

Dubai — Crude oil production from the neutral zone where Saudi Arabia and Kuwait share output equally will reach 550,000 b/d by the end of the year after a pumping trial from the region started on Sunday, according to Kuwait's oil minister.

Saudi Arabia and Kuwait will gradually ramp up production from the offshore al-Khafji field and the onshore Wafra field, Khaled al-Fadhel said, the state-run KUNA news agency reported on Sunday.

Al-Khajfi is owned by Saudi Arabia's Aramco Gulf Operations Co. and Kuwait Gulf Oil Co., a unit of state-run Kuwait Petroleum Corp., and Wafra is operated by KGOC and Saudi Arabian Chevron.

Saudi Arabia and Kuwait signed agreements in December to restart production from the neutral zone which has been shut in for more than four years. Oil ministers in both countries have said that the resumption of production would not impact their commitments to OPEC+ cuts.

The agreements signed in December also included a provision to start studies on developing the Dorra gas field in in the neutral zone, al-Fadhel said on Sunday.

Kuwait, which has an OPEC+ quota of 2.67 million b/d, is complying with that level, he added.

Kuwait plans to boost its oil production capacity to 4 million b/d, he said.