Kuwait-Saudi Oil Zone to Begin Production
Crude oil output is set to rise this week with the start of onshore production from the Neutral Zone, shared by Kuwait and Saudi Arabia, for the first time since Iraq’s invasion of Kuwait in August, 1990.
The higher output is good news for oil consumers but, amid a worldwide glut of oil, will not help the OPEC cartel in its efforts to push up prices.
The oil ministers of Kuwait and Saudi Arabia will usher in the resumed production at a ceremony Tuesday.
Kuwait has been rapidly rebuilding its shattered oil industry since it was liberated from seven months of Iraqi occupation a year ago.
Revenues are split 50-50 between Kuwait and Saudi Arabia, OPEC’s largest oil exporter.
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