Kuwait-Saudi oil field shut down ‘for technical reasons’

Kuwaiti official says it had nothing to do with oil supply and demand.

Powered by automated translation

Production from the joint Kuwaiti-Saudi oil field was shut down due to technical reasons, not oil supply, said a Kuwaiti official.

The 300,000-barrel-a-day Khafji offshore field, located in a neutral zone between the two Arabian Gulf states, was halted in October.

“The cut in production has no relationship with oil supply and demand,” said Abdulaziz Al-Attar, team leader in International Market, Crude oil Department at state-run Kuwait Petroleum Corporation.

“This is due to pure technical factors.”

Kuwait is currently exporting 2.06 million barrels per day (bpd), with a current oil production capacity exceeding 3 million bpd. Around 80 per cent of oil goes to Asia, 15 per cent to the United States and 5 per cent to Europe.

Kuwait is on track to boost production to 4 million bpd by 2020.

Also the Gulf state plans to boost refining capacity to over 1.3 million bpd by 2019 from the current 940,000 bpd.


Follow The National's Business section on Twitter