Sources: Kuwait offers Khafji crude in April exports after a long hiatus

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SINGAPORE (Reuters) – KPC offered its first shipments of Khafji crude oil produced by the neutral zone between Saudi Arabia and Kuwait for export in April, after a supply disruption dispute for five years, two sources familiar with the matter said on Friday.

In a note to clients dated March 5 seen by Reuters, 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.

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.

Kuwait and Saudi Arabia, both members of OPEC, agreed last year to end a five-year conflict over the region, which allowed the resumption of production from two co-managed managed fields that could pump up to 0.5 percent of the global oil supply.

The two Gulf neighbors began trial production of the combined Wafra and Khafji fields in February.

Prepared by Ahmed Elhamy for the Arabic Bulletin

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