Saudi Aramco says Saudi-Kuwaiti deal paves way for oil production resumption

Saudi Aramco on Wednesday said a new agreement between Saudi Arabia and Kuwait paves the way for the resumption of oil production in the neutral zone shared between the two countries.

“Today is a remarkable day within the framework of economic and oil cooperation and integration between both the Kingdom of Saudi Arabia and the State of Kuwait,” Aramco CEO Amin Nasser said in a statement.

The countries announced the deal on Wednesday. The agreement was signed by Prince Abdulaziz bin Salman bin Abdulaziz, Saudi Arabia’s Minister of Energy, and Sheikh Dr. Ahmed Nasser al-Mohammed al-Sabah, Kuwaiti Foreign Minister, at a ceremony at Wafra, according to the Saudi Press Agency (SPA) and Kuwaiti official news agency Kuna.

“With the signing of this new accord, both parties have reached consensus that now is the right time to resume production in this zone. Both sides will work to ensure production resumption at the earliest opportunity.” Nasser added.

Saudi Arabia and Kuwait stopped producing from jointly-run oilfields in the so-called Neutral Zone more than four years ago, cutting some 500,000 barrels per day.

AGOC, a unit of Aramco, operates the Khafji oil field alongside Kuwait's Gulf Oil Company (KGOC).

US oil company Chevron, which jointly operates the Wafra field with KGOC on behalf of Saudi Arabia, said it expected it to return to full production within 12 months.