After long five years, Saudi Arabia and Kuwait’s dispute over shared oil fields have come to an end. The two nations have now agreed to resume oil production from the divided Neutral Zone, but stressed this would not change their OPEC commitments to crude oil production cuts.
On Tuesday, the allied Gulf Arab nations signed the agreement in Kuwait City. The agreement was signed by Saudi Energy Minister Prince Abdulaziz bin Salman. As per reports, the field was producing around 300,000 barrels per day before the dispute halted production in early 2015.
The controversial field is located at the border areas of the two neighbouring countries and can produce up to half-a-million barrels per day.
As per the local media reports, the agreement will not affect Saudi Arabia’s commitments to reduce its crude output to 9.7 million barrels of per day.
The Kuwait News Agency reported that a “lavish ceremony” was held to mark the event, and was attended by Kuwait’s foreign minister, energy minister and other officials.
(With input from agencies)