Kuwait Emir: Exports from Joint Oil Fields with Saudi to Resume

Reuters

KUWAIT, Jan 21 (Reuters) - Kuwait's emir has said operations and exports from oil fields jointly operated with Saudi Arabia will resume soon, local media reported on Thursday.

"The resumption of operations and exports in joint oil fields will resume soon. No matter what happens, we don't have a disagreement with Saudi Arabia and even if there is one, it will be resolved," Sheikh Sabah al-Ahmed al-Sabah was quoted as saying by Al Rai newspaper.

He did not elaborate on how obstacles to reopening the fields would be removed.

The Al-Khafji oilfield has been shut since October 2014 for non-compliance with new Saudi environmental standards. It is operated by Al-Khafji Joint Operations Co, a joint venture between AGOC, a subsidiary of state oil firm Saudi Aramco, and Kuwait Gulf Oil Co.

Saudi Arabia and Kuwait also share the Wafra oilfield, which has been shut since May 2015 by operating difficulties, according to officials. U.S. oil major Chevron operates the field on behalf of the Saudi government.

Before the closure, the Khafji field produced around 280,000 to 300,000 barrels per day, while Wafra has an output capacity of about 220,000 bpd.

The remarks by the emir were made at a meeting with newspaper editors, Al Rai reported.

The emir also said the government had to raise ultra-low domestic prices of fuels and utilities.

"The government has to stop subsidies and raise the prices of fuels, electricity and water," he was quoted as saying, without giving details of when the changes might happen or how large they would be.

Kuwait has been looking at a range of ways to cut state spending and increase revenues to cope with declining oil revenues due to lower crude prices.

(Reporting by Ahmed Haggagy; Writing by Maha El Dahan; Editing by Andrew Torchia)

Copyright 2016 Thomson Reuters. Click for Restrictions.

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