Trial production from Al-Khafji oil field to start soon

Kuwait newspaper Al-Rai reported on Sunday that production at Al-Khafji will start by the end of February. (Shutterstock)
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Updated 02 February 2020

Trial production from Al-Khafji oil field to start soon

  • The field should be pumping about 60,000 bpd by August, the official said

KUWAIT CITY: Saudi Arabia and Kuwait have started preparation work to resume crude oil production from the Al-Khafji oil field jointly operated by the two countries, with initial output expected around the end of February, two industry sources said.

Saudi Arabia and Kuwait, both members of the Organization of the Petroleum Exporting Countries (OPEC), agreed last year to end a five-year dispute over the area known as the Neutral Zone, allowing production to resume at two jointly run fields that can pump up to 0.5 percent of the world’s oil supply.

Trial production of about 10,000 barrels per day (bpd) from Al-Khafji will start around Feb. 25, a Kuwaiti oil official said, adding that this would be “sufficient to test all installations and their operational efficiency.”

The field should be pumping about 60,000 bpd by August, the official said.

Another 10,000 bpd of trial output from the Wafra field will start by late March, the official said, adding that production is expected to increase to 80,000 bpd from the field within six months of starting trial production.

Output is expected to reach 175,000 bpd from Al-Khafji and 145,000 bpd from Wafra after a year of restarting the fields, the official said.

Kuwait newspaper Al-Rai reported on Sunday that production at Al-Khafji will start by the end of February and that testing of oil and gas pipelines and facilities has already begun.

Al-Khafji is operated by Al-Khafji Joint Operations Co., a joint venture between Kuwait Gulf Oil Company and AGOC, a subsidiary of Saudi Aramco. 

It had been producing between 280,000 bpd and 300,000 bpd of Arabian Heavy crude before its closure in 2014 for environmental reasons.


Egypt signs lucrative gas deals

Updated 50 min 11 sec ago

Egypt signs lucrative gas deals

  • Five agreements were signed during the last fiscal year

CAIRO: The Egyptian Natural Gas Holding Company (EGAS) has signed eight research and exploration agreements with investments of $934 million.

Five agreements were signed during the last fiscal year and three others during the first quarter of this fiscal year.

Minister of Petroleum and Mineral Resources Tarek El-Molla said that the integrated strategy adopted by the ministry to develop Egypt’s natural gas resources has succeeded in recording the highest rates of natural gas production in the history of the country, achieving gas self-sufficiency and resuming exports.

He said that natural gas plays a significant role in achieving economic returns, in addition to attracting new international companies to work in the field of research and exploration in Egypt.

El-Molla said a project to transform Egypt into a regional center for the handling and trade of gas and oil is being planned.

The minister stressed the importance of implementing the national project for providing natural gas to all Egyptian governorates and citizens.

Magdy Galal, EGAS head, reviewed the development of natural gas production rates during the past five years and the efforts to confront the natural decrease of wells.

He said that during the recent fiscal year, the company signed a total of five agreements. On top of the $934 million in investments, there were also signing grants worth $51 million.

He added that the company has 37 ongoing agreements, a result of a Ministry of Petroleum and Mineral Resources strategy, which attracted new investments and the entry of Exxon Mobil and Chevron in the field of research and exploration in Egypt, and an increase in investments from companies such as Shell and Total.

He said the company is finalizing six other agreements with investments of $731 million and $14 million in signing grants.