Kuwait Oil Co chief says oil fields operated by Saudi Arabia and Kuwait may face more obstacles
The resumption of oil production from oilfields jointly operated by Saudi Arabia and Kuwait will take time and may face obstacles, the chief executive of the Kuwait Oil Company (KOC) said on Tuesday.
"The joint Khafji and Wafra fields... will need some rehabilitation before they resume production," Jamal Jaafar told reporters in Kuwait.
He said bringing back the oilfields "will face some technical and administrative difficulties but Saudi Arabia and Kuwait are able to overcome them."
The fields are in the Neutral Zone that lies between both countries.
Jaafar said that the recent OPEC decision to cut production beginning in January would not affect Kuwait's oil investment plans.
First off, I don't know the issues of producing in a NZ, However at this point I don't like the idea of neutral zone. It sounds too much like DMZ line. Assuming that the rule of capture is used on the NZ for producing production. The amount of production from a giving well in a NZ area to produce at maximum allowable for the life of a well based on the porosity and permeability factor in to the drainage equation could still exceed the width of the NZ over time causing conflict at a later date.