Saudi Arabia, Kuwait announce significant oil discovery in neutral zone
Saudi Arabia and Kuwait have announced a "highly significant" oil discovery in the neutral zone, marking a major breakthrough in energy exploration.
The discovery, located in the North Wafra Wara-Burgan field, boasts an output of more than 500 barrels per day. This marks the first major find since both nations resumed production in the region in 2020.
The discovery is seen as a positive development for both countries, reinforcing their status as key global energy suppliers.
The North Wafra field is located just five kilometers north of the existing Wafra field, and it represents an important step forward in oil exploration in the partitioned zone, which had been dormant for several years.
"This discovery is regarded as highly significant," said the Saudi Press Agency, citing its potential to enhance the two countries' standing in the global energy market.
Saudi Arabia and Kuwait Announce New Oil Discovery in the Partitioned Zone.https://t.co/RjQSwEVh8f#SPAGOV pic.twitter.com/6ws5D6Msnh
The announcement follows a series of agreements between the two nations, with a 2019 agreement dividing up oil production in the neutral zone, which could eventually bring an additional 500,000 barrels per day into global supply.
The Wafra and Khafji oilfields in the neutral zone had halted production in 2014 and 2015, respectively, but resumed in mid-2020.
This new discovery demonstrates the continuing importance of the neutral zone to both nations' oil production capabilities.
The breakthrough comes amid growing concerns about global oil demand and supply pressures.
While prices have remained volatile, with Brent crude trading at $64.64 per barrel, the announcement of new reserves highlights Saudi Arabia and Kuwait's commitment to securing long-term energy supply and meeting global demand.
This discovery is part of a larger trend in the region, with Saudi Arabia's oil giant Aramco recently unveiling 14 new oil and gas fields, further bolstering the kingdom's position in the energy market.
The discoveries also coincide with significant finds in Kuwait, including a massive oil and gas discovery at the Al-Nokhatha field.
Despite the exciting news, the global oil market remains subject to volatility, particularly amid US tariff concerns and Opec+ production plans.
Oil prices have recently fluctuated, with projections indicating that Brent crude will hover between $63 to $65 per barrel for the remainder of the year.
This new discovery, however, gives Saudi Arabia and Kuwait an even stronger foothold in the international oil market as both countries look to solidify their energy futures.