Saudi Arabia and Kuwait have unveiled a significant oil field, marking a substantial expansion in petroleum resources for both nations.
A new oil field has been discovered in the border region between Saudi Arabia and Kuwait, as per a joint statement released by the two nations. The oil deposit is located in the North Wafra Wara-Burgan area, roughly five kilometers north of the primary Wafra field.
This discovery marks the first significant oil find in this sector since the resumption of production activities in mid-2020. The Wafra Joint Operations teams made the breakthrough in the Wara reservoir of the North Wafra (Wara-Burgan-1) well, which is currently producing over 500 barrels of crude oil per day. The discovered oil has an API gravity of 26 to 27 degrees, classifying it as a medium-grade crude.
The location of the North Wafra Wara-Burgan field falls within the partitioned area, known as the Neutral Zone, that has been jointly operated by Kuwait and Saudi Arabia since its establishment in 1922. Oil production in this region has fluctuated over the years, with joint operations starting and stopping sporadically.
Historically, oil production in this partitioned zone was completely halted between 2014 and 2015 due to conflicts between the two countries. However, analysts predict that the volume of this newly discovered fuel could contribute up to 0.5% of the global market.
The renewed focus on exploration and production in the Neutral Zone underscores the strategic importance of this site for both countries. The discovery underscores Saudi Arabia and Kuwait's ongoing efforts to secure their roles as key global energy suppliers, potentially influencing global oil prices and supplies. Despite its smaller production scale, the find is a significant milestone for both nations.
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The new oil field discovery in the North Wafra Wara-Burgan area, straddling the border between Saudi Arabia and Kuwait, is set to have a significant impact on the energy industry, particularly in the oil-and-gas sector. Given its location within the Neutral Zone, operated jointly by the two countries since 1922, this find could bolster both nations' finance and their roles as key global energy suppliers, potentially influencing global oil prices and supplies.
