The 30 September visit of Saudi Crown Prince Mohammed to Kuwait brought with it optimism that a deal could be reached to restart production from the Partitioned Neutral Zone (PNZ). Output from the shared fields has been fully shut-in since 2015, and there appears to be gathering momentum for a restart amid global oil market supply concerns (MEES, 6 July). But no deal was forthcoming.
Bloomberg reports that talks fell apart over Kuwait’s refusal to permit US major Chevron to work at the PNZ – Chevron administers Saudi Arabia’s 50% share of the onshore fields on the kingdom’s behalf and is the only such foreign firm in either country’s upstream. PNZ output was around 440,000 b/d in the first half of 2014 before the 240,000 b/d offshore output was halted in October 2014, with the onshore portion’s 200,000 b/d stopped in May 2015 (MEES, 31 July 2015). (CONTINUED - 142 WORDS)