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Thu 15 Aug 2019 09:58 AM

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Video: Kuwaiti-Saudi Neutral Zone - will the Middle East be able to withstand the extra oil production?

Kuwait said it's working with Saudi Arabia to resume oil production in the neutral zone between them that has been shuttered for at least four years.

Saudi Minister of State for Energy Prince Abdulaziz Bin Salman visited Kuwait Wednesday. The two sides will discuss a resumption after the “completion of all technical issues required,” Tareq Al-Mezrem, a Kuwaiti government spokesman, told Kuwait’s state-run KUNA news agency.

The zone can produce as much as 500,000 barrels a day, equal to about 4% of the countries’ combined output last month. No timeline for a resumption was given, nor was it clear if the additional production would be offset by lower output elsewhere. Both countries are subject to quotas set by the Organization of Petroleum Exporting Countries.

The two sides have resolved the major issues and those outstanding are technical in nature, according to a person familiar with the discussions, who asked not to be identified because the matter is private. The talks are the most advanced they’ve ever been, the person said.

(Source: Arabianbusiness.com YouTube channel)