Saudi Arabia and Kuwait are to suspend operations at Al-Khafji oil field, one of four offshore and one onshore fields located in the neutral zone between the two countries.
The decision is part of mutually agreed cuts in an effort to shore up oil prices and to reduce the surplus in global supplies and is expected to commence from 1 June, according to Kuwait’s Al-Rai newspaper.
OilPrice reports that shared oil fields Al-Khafji and Wafra were pumping half a million barrels a day until 2015 when operations were suspended over operational differences and worsening bilateral ties. Negotiations to restart production took place in 2018. A new border agreement was signed between Saudi and Kuwait in December.
According to the site, oil production restarted only a few months ago, just before the COVID-19 crisis contributed to a record breaking plummet in oil prices last month.
Last week, Saudi pledged to cut an additional one million barrels per day beyond its agreed quota in June, with fellow OPEC members the UAE and Kuwait making similar pledges.