Weekly MENA Newsletter will be delivered to your email in PDF format every Friday (52 Issues per Year).
Chevron’s Saudi Arabian unit, Saudi Arabian Chevron, has reportedly told its Kuwaiti partner that it plans to shut down joint oil field operations in the Neutral Zone shared by Saudi Arabia and Kuwait in early May, amid mounting problems that have hampered production.
The dispute between the two Opec allies has been rumbling for some time and Chevron has been caught in the middle.
Reports of a possible total exit by Chevron after 70 years as the sole foreign oil operator on Saudi soil, first surfaced in Kuwait’s al-Qabas newspaper in March and April. In a 16 April report, the newspaper quoted senior oil sources as saying that Chevron had informed the Kuwait Gulf Oil Company that it planned to shut down its operations in the Partitioned Neutral Zone (PNZ) on 13 May, when an oil export agreement with a Saudi private company expires. Subsequent news agency reports suggest the shutdown may come as early as 9 May. The concession expires in 2039. (CONTINUED - 671 WORDS)