Saudi Arabia and Kuwait have jointly announced a new oil discovery in the Partitioned Zone (PZ), a shared area where both OPEC members hold equal rights to oil output.
The discovery was made by Wafra Joint Operations at the North Wafra Wara-Burgan field, located about 5 kilometers (3.1 miles) north of the main Wafra field, according to the Saudi Press Agency on Monday.
The Partitioned Neutral Zone, established in 1922 to resolve a territorial dispute, has been a key area for oil production since the 1950s. The new discovery marks the first since production resumed in the area and its nearby offshore fields in mid-2020.
Initial reports indicate that the Wara reservoir at the North Wafra (Wara-Burgan-1) well is producing more than 500 barrels of crude oil per day. The oil has an API gravity between 26 and 27 degrees, suggesting medium-grade crude.
Officials in Riyadh described the find as a significant development. “The discovery is important for both nations as reliable global energy suppliers and demonstrates their strength in exploration and production,” the statement said.
The announcement comes as Saudi Arabia continues to lead OPEC+ in managing oil supplies. The kingdom has pushed for stricter compliance among members, particularly criticizing overproduction by countries like Kazakhstan. Saudi officials are willing to accept short-term price drops to rein in global supply and support market balance.
Meanwhile, Kuwait is planning major investments to grow its oil production capacity. Kuwait Petroleum Corporation aims to invest up to $50 billion over the next five years to raise output to more than 3 million barrels per day (bpd). Its long-term 2040 strategy targets a sustainable production capacity of 4 million bpd, including output from the Partitioned Zone.
Kuwait ranks as OPEC’s fifth-largest producer, following Saudi Arabia, Iraq, Iran, and the UAE.
Related Topics:
- Traders Eager to Reenter Russian Crude Market, But the Door Remains Closed
- Oil Prices Rise Due to Venezuela Tariffs
- Iraq Gives BP Final Approval for Kirkuk Oil Development