Saudi Arabia’s energy minister says Kuwait deal will not affect OPEC+ cuts

The agreement was signed in Kuwait by Prince Abdulaziz, and Kuwaiti Foreign Minister Sheikh Ahmed Nasser al-Mohammed. (Courtesy: SPA)

Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman said that the resumption of oil production from oilfields shared by the Kingdom and Kuwait will not affect an OPEC+ decision to deepen production cuts until March 2020, the Saudi Press Agency (SPA) reported.

On Tuesday, Saudi Arabia and Kuwait signed an agreement to resume production from the Neutral Zone oilfields along their border. The Gulf neighbors halted production at the Khafji and Wafra fields over four years ago, which together pumped out about 500,000 barrels per day (bpd) of oil.

Prince Abdulaziz added that production at the Khafji operations will reach 325,000 bpd by the end of 2020.

Earlier this month, OPEC and its crude exporting allies, collectively called OPEC+, committed to some of the sector’s deepest output cuts in a decade, cutting production by an additional 500,000 bpd, bringing the total cut to 1.7 million bpd, as the organization aims to avert oversupply and support prices.

The remarks were made during the minister’s visit to the joint Khafji operations on Wednesday. He was joined by Prince Ahmed bin Fahd, Deputy Governor of Saudi Arabia’s Eastern Province and Kuwait’s energy minister Dr Khaled Al-Fadil.

Aramco Gulf Operations Company (AGOC), a unit of Aramco, operates the Khafji oil field alongside KGOC.

“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.

Separately, US oil company Chevron, which jointly operates the Wafra oil field with the Kuwait Gulf Oil Company (KGOC) on behalf of Saudi Arabia, said on Tuesday it expects the Wafra field to return to full production within 12 months.

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Last Update: Thursday, 26 December 2019 KSA 11:59 - GMT 08:59
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