Business | Oil & Gas
Saudi Arabia and Kuwait to hike Neutral Zone capacity
Kuwait and Saudi Arabia are on track to boost oil output capacity in the shared Neutral Zone between the two countries by 50,000 barrels a day by 2009, a Kuwaiti official said on Monday.
- Reuters
- Published: 23:41 February 5, 2008
Kuwait City: Kuwait and Saudi Arabia are on track to boost oil output capacity in the shared Neutral Zone between the two countries by 50,000 barrels a day by 2009, a Kuwaiti official said on Monday.
This would come entirely from the offshore area, taking the total capacity for the zone to around 624,000 bpd from 574,000 bpd, said Bader Al Khashti, managing director of Kuwait Gulf Oil Company. KGOC is the operator on Kuwait's side of the zone.
New wells had been drilled in the offshore area and new pumps installed in subsea wells to raise capacity, he added.
Current output capacity in the offshore area of the zone stood at around 300,000 bpd, while the onshore area had capacity of around 274,000 barrels per day, Khashti said.
In the onshore area, US oil major Chevron Corp was going ahead with a large project to use steam injection to increase heavy oil output after the successful completion of a pilot project.
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