Kuwait and Saudi Arabia on Tuesday signed an agreement and a memorandum of understanding on dividing the Neutral Zone between the two countries which contains jointly operated oilfields, Kuwait’s state-run news agency (KUNA) said.
There were no additional details on the agreement, which resolves a more than five-year dispute between the two OPEC member countries and will lead to the resumption of oil output from their jointly-operated fields.
Kuwait’s oil minister hailed the agreement, and the consequent resumption of oil production from the Saudi-Kuwaiti Divided Zone.
“I congratulate his highness the Emir Sheikh Sabah al-Ahmad al-Sabah… on the occasion of signing the Memorandum of Understanding with our brothers in the Kingdom of Saudi Arabia and the return of production to the divided zone,” minister Khaled al-Fadhel said in a statement.
The two countries halted output from their jointly run Khafji and Wafra oilfields more than five years ago, cutting some 500,000 barrels per day or 0.5% of global oil supply.
Oil output in the Neutral Zone, which dates back to 1920s treaties establishing regional borders, is divided equally between Saudi Arabia and Kuwait.