Chevron Eyes Long Term Gains From Saudi-Kuwait Neutral Zone

21 Feb 2025 Issue: 68 / 8 By: Jamie Ingram

Development work has slowly been ramped up at the PNZ’s onshore portion since production resumed in 2020. Exploration drilling at Wafra resumed last year, and a discovery is being tied back to existing facilities for further testing.

Five years after production restarted in the Partitioned Neutral Zone (PNZ) following a lengthy shutdown, there is renewed optimism over the area’s potential. Production is holding steady at relatively close to pre-shut in levels (MEES, 31 January), and plans to develop new production areas onshore and offshore are progressing.

Oil and gas production in the PNZ is jointly overseen by Saudi Arabia and Kuwait. At the onshore portion, Chevron operates on behalf of Saudi Arabia through its Saudi Arabian Chevron (SAC) subsidiary, where it partners Kuwait Gulf Oil Company (KGOC) in the Wafra Joint Operations (WJO) joint venture. The US major netted 60,000 b/d from the PNZ last year, and while this only accounted for around 3.0% of its global liquids output for 2024 (3.7% of global crude), Chevron sees sizeable growth potential in the region. (CONTINUED - 838 WORDS)