Bid to resume oil production in Khafji

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Appropriate compensation last point of contention between Kuwait, Saudi

KUWAIT CITY, July 6: The last point of contention between Kuwait and Saudi Arabia to resume oil production in the Khafji divided area is related to the appropriate compensation mechanism for Chevron, noting that there is almost a technical agreement between the two sides to resume production, as soon as possible, reports Al-Rai daily quoting informed sources quoting Bloomberg.

Bloomberg, quoting well-informed sources, said Saudi Arabia and Kuwait are closer than ever to an agreement to resume oil production in the neutral zone after a breakthrough in recent talks. The sources said that the two countries have not yet reached a final agreement, but a meeting held recently made significant progress in finding solutions to outstanding issues.

The sources told Al-Rai that the current debate between the two countries has not reached a final solution on how to compensate Chevron, in terms of the percentage that the company deserves and its value, and the number of years during which the compensation will be paid, as well as the transfer of the buildings of the company, is witnessing an agreement so far, and an understanding is underway.

The sources described the atmosphere as positive, but did not expect a deadline for the return of production, stressing that the Kuwaiti and Saudi sides agreed on the importance of the return of production as soon as possible.

According to the sources, the two parties, after a meeting last June, are working on the drafting of new documents, ahead of further talks, expected to be held in Kuwait next month, noting that if the parties can finish some technical details, production can be resumed from Khafji and Al-Wafra fields.

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