Source: SINGAPORE – Reuters
Two sources said today, Friday, that the Kuwait Petroleum Corporation offered its first shipments of Khafji crude oil produced by the neutral region between Saudi Arabia and Kuwait for export in April, after five years of stopping.
In a note to clients dated March 5, the Petroleum Corporation said that Khafji crude production had resumed and that all production operations were now proceeding smoothly. Buyers were offered the first shipment of Khafji for export in April.
The organization did not respond to requests for comment. A Kuwaiti oil official said last month that it would start producing about 10,000 barrels of Khafji on February 25. He added: “It is sufficient quantity to test all installations and their operational efficiency.”
The official added that the field will pump about 60 thousand barrels by August, as production will start from the Wafra field by 10 thousand barrels per day in late March, and production is expected to increase to 80 thousand barrels per day from the field after six months of the start of experimental production.
The official added at the time that production from the Khafji field is expected to reach 175,000 barrels per day and from the Wafra field to 145,000 a year after the start of experimental production.
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 spread 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.