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AlwaysFree: Saudi Arabia, Kuwait Working To Increase Neutral Zone Crude Oil Output

Author: SSESSMENTS

Saudi Arabia and Kuwait said in a joint statement that they are working to increase crude oil output at the Neutral Zone fields, which could provide OPEC+ with an extra spare capacity which is expected to shrink in 2022. The zone covers onshore and offshore fields within the land and maritime territory shared by the two countries at their border. The zone’s output is split evenly between Saudi Arabia and Kuwait.

Saudi Arabia and Kuwait shut the zone’s production for over four years until 2020, amid a political dispute resolved in December 2019. The two Gulf countries typically produced 500,000 bpd from the Neutral Zone’s offshore Khafji and onshore Wafra fields prior to their shutdown in the mid-2010s. The fields’ production has stayed below 270,000 bpd after the shutdown due to technical challenges.

Crude exports from the zone have ranged between 158,000 bpd in August, and 257,000 bpd in November, ship-tracking data showed. The exports regularly go to China, India, South Korea, and the US. Japan and Thailand also took some cargoes from the zone in recent months, the data showed.

Tags: AlwaysFree,Crude Oil,English,Kuwait,Middle East,Saudi Arabia

Published on December 13, 2021 12:41 PM (GMT+8)
Last Updated on December 13, 2021 12:41 PM (GMT+8)