The Wafra onshore oilfield is set to be closed for at least another month, according to Arab daily Asharq Al-Awsat.
The operators of the jointly operated Kuwaiti-Saudi field have told all non-vital staff to take leave, with effect from the 1st of August.
The Wafra field was originally closed on 11th May to enable Saudi Arabia and Kuwait to resolve an ongoing dispute.
Industry sources say that the dispute revolves around Kuwait’s anger that it was not consulted when the Chevron’s concession to operate Wafra was renewed by Riyadh in 2009 until 2039.
Chevron, which operates the oilfield on behalf of Saudi Arabia, has said that all staff will take “open-ended” leave if production did not resume by end-August, a step aimed at reducing costs amidst the shutdown.
The Neutral Zone is the only place in Saudi Arabia and Kuwait where foreign oil firms have equity in fields, which are otherwise owned and operated by state oil companies. Crude output is divided equally between the two countries.
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