Saudi Arabia, Kuwait agree to resume oil output at shared fields

Saudi Arabia and Kuwait agreed to resume oil production in a shared border region more than four years after halting output. Kuwait has said it is ready to host Yemen’s opposing factions for UN-sponsored talks. Former Kuwaiti lawmaker Walid Al Tabtabaie, convicted for storming parliament in 2011. The government submitted its resignation to Kuwait’s Emir Shaikh Sabah Al Ahmad on last Thursday.

The agreement allows “the resumption of oil production from the joint fields,” the Saudi energy ministry said on Twitter. Kuwait City: Kuwait’s ruler named Shaikh Sabah Al Khalid Al Sabah as prime minister on last Tuesday. Kuwait’s Emir Shaikh Sabah Al Ahmad and Jordanian King Abdullah II on Wednesday discussed boost of relations between the two countries.

The oil fields at the so-called neutral zone can produce as much as 500,000 bpd. Kuwait has sounded upbeat over resolving a years-long row pitting a Saudi-led quartet against Qatar. European powers are seeking talks in Kuwait between the US and Iran to defuse their tensions. More than each of OPEC’s three smallest members pumped last month.

Al Tabtabaie, 55, said he had been informed by Kuwaiti authorities that on an order from Kuwait’s Emir Shaikh Sabah. KUNA said Emir Shaikh Sabah Al Ahmad Al Sabah asked Shaikh Sabah Al Khalid to form a new government. A resumption is unlikely to add oil to the market because Saudi Arabia and Kuwait both adhere to production limits. Tensions have mounted in recent months between the US and Iran as Washington blamed Tehran.

The Organization of Petroleum Exporting Countries extended into March. The offer was made by Kuwait’s delegate to the United Nations Mansour Al Oteibi during a Security Council session. Senior officials from both countries attended the talks, which followed the Jordanian monarch’s arrival in Kuwait. Kuwait was and is still continuing its efforts to heal the Gulf rifts.

Even so, the agreement to re-start the fields could weigh on market sentiments amid concerns about faltering growth. In June 2017, Saudi Arabia, the UAE, Bahrain and Egypt severed diplomatic. In April, the US designated Iran’s powerful Revolutionary Guard as a terrorist organization. The demand and rising supply from the U.S. and other producers.

Kuwait has confirmed that it will not rest until the Gulf rift is settled. The Kuwaiti delegate told the UN Security Council that his country’s overture is encouraged. Al Ahmad he was permitted to return to the country to bury his mother. The talks tackled the distinguished fraternal relations between the two countries and their brotherly people.

Last year, US President Donald Trump withdrew his country from a 2015 international nuclear deal. Earlier this week, the government returned to Aden from Saudi Arabia. The neutral zone, spanning more then 5,700 square kilometers (2,200 square miles), was created by a 1922 treaty between Kuwait. The announcement came after the caretaker prime minister on Monday declined to be reappointed as premier.

The Kuwaiti official’s remarks came a day after Saudi Arabia said the row will be resolved by Kuwaiti mediation efforts. The two Gulf Arab monarchies agreed to divide the area and incorporate each half into their respective territory. This return is a clear sign that Saudi Arabia and other alliance countries are keen on Yemen’s stability and security.

Discussion also covered ways of enhancing Kuwaiti-Jordanian cooperation in all fields. The region contains two main oil fields: the onshore Wafra and offshore Khafji. The talks, moreover, dealt with issues of mutual interest, consolidating the march of joint Arab work. The envisaged talks in Kuwait will hopefully lead to negotiations on the nuclear row.

The area hasn’t produced anything since 2015, when Khafji was shut down after a spat between the neighbors. Al Tabtabaie is the second ex-MP convicted in the case to return home in recent weeks. The official Saudi news agency SPA urged Qatar in a report on Saturday to comply with the Arab quartet’s demands. It had notified the Emir of his decision to stop attending the cabinet meetings.

Kuwait’s Emir had assigned Shaikh Jaber Al Sabah with forming a new government on last Monday. Kuwaiti authorities have pledged an inquiry into the death of a man. The Kuwait Emir called for healing inter-Arab rifts and warned against repercussions of regional turmoil. Wafra stopped pumping in 2014. The European countries that signed the nuclear agreement with Iran.

The disagreement began over the Wafra field, which Chevron Corp. operates. Kuwaiti authorities have pledged an inquiry into the death of a man while he was in police custody. Saudi Arabia extended the original 60-year concession of the field. These countries believe that there is a chance to build on intense talks that they they have recently held separately.

Kuwait was furious over the announcement and claims Riyadh never consulted it about the extension. In 2016, Kuwait hosted inconclusive UN-sponsored talks between the Yemeni government and Al Houthis. Newly appointed Interior Minister Anis Al Saleh ordered the formation of a “neutral” committee to investigate the incident.

Company remains committed to the neutral zone and is ensuring that production can resume whenever a decision is taken. Al Saleh, who is also a deputy prime minister in a new government installed last week. The sources, however, said the proposed talks in Kuwait still faces opposition from some countries in the region. The wrongdoers will be brought to account and appropriately penalized.

Saudi Arabia and Kuwait have held a number of private meetings since 2015, at one point coming close to signing an agreement. Kuwaiti parliament Marzouq Al Ganem offered condolences to the man’s family and hailed Al Saleh’s prompt reaction. It pulling back at the last minute over wording in the final documents regarding contentious sovereignty issues.

The European powers are making “intense efforts” to overcome this opposition. The appointment of Ghadeer Mohammad Mahmoud in Kuwait’s new government has drawn sharp criticism. They entered a fresh phase of talks earlier this year. There was no immediate official comment in Kuwait on the report. The head of the government leaves no option in dealing with the minister.

The fields are particularly important because U.S. sanctions on Iran and Venezuela have tightened the supply of heavy, high-sulfur crude. Last month, the Kuwaiti government resigned amid a row between the parliament and the government. It precisely the kind of oil that the neutral zone produces. Accusations have recently swirled in Kuwait over alleged corruption including wasting of public money. U.S. diplomats had been pressing both sides to reach an agreement.

Facebook Comments