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Kuwait’s oil sector received a shot in the arm this week when it emerged that production in the Partitioned Neutral Zone (PNZ) is to resume after almost a year of no output.
Acting Oil Minister Anas al-Salih told parliament on 29 March that an agreement had been reached with Saudi Arabia, which shares the PNZ with Kuwait, to begin limited production at the offshore 300,000 b/d Khafji field.
Khafji is jointly operated by Kuwait Gulf Oil Co (KGOC) and Aramco Gulf Operations. Prior to Saudi Arabia unilaterally halting production in October 2014, ostensibly over environmental concerns, production was around 200,000 b/d, which was split equally between the countries (MEES, 28 November 2014).
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