For the first time after the dispute with Saudi Arabia, Kuwait is selling Khafji crude


Kuwait Petroleum Corporation offered its first shipments of Khafji crude oil produced by the neutral region between Saudi Arabia and Kuwait for export, next April, after a five-year supply disruption dispute.

Reuters reported on Friday that it had obtained a note for customers on the fifth of March, indicating that the production of Khafji crude has resumed, and that all production operations are proceeding smoothly now, and offered to buyers the first shipment available from it for export next April.

The move coincides with the Organization of Petroleum Exporting Countries (OPEC) seeking to deepen substantially the reduction of oil production from OPEC countries and its allies by 1.5 million barrels per day until the end of 2020, to help raise prices after demand was negatively affected by the outbreak of the Corona virus worldwide.

Oil production from the neutral zone – also known as the divided zone – is expected to reach 550,000 bpd before the end of the year, the Kuwaiti oil minister said in February.

Kuwait and Saudi Arabia had agreed, at the end of last year, to end a five-year conflict over the region, which allowed the resumption of production from two jointly managed orbit fields that could pump up to 0.5% of the global oil supply.

The two Gulf neighbors began experimental production from the joint fields of Wafra and Khafji last February.


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