Kuwait's May output for Neutral Zone reaches 260,000bpd

Kuwait's oil production from the shared Neutral Zone it shares with Saudi Arabia hit 260,000 barrels per day (bpd) in May, a senior official said on Monday.

While speaking to Reuters on the sidelines of a conference in Manama, Bader al Khashti, managing director, Kuwait Gulf Oil Company, said: "We produced around 260,000 bpd this month, we have four rigs in operation."

Kuwait said in April that the two countries have boosted output capacity from the shared zone to 610,000 barrels per day from around 550,000 bpd.

But it said they have drawn back from long term plans plans to further boost capacity to 700,000 to 900,000 barrels per day (bpd) by 2030 as the fields in the zone are declining.

Kuwait and Saudi Arabia plan to increase the percentage of oil recovered from the fields with oil major Chevron to maintain onshore output.

He said: "We're waiting for the full picture which we anticipate in mid 2011 to see if pilot is successful so we can decide whether to develop or not." (Reuters)