RIYADH: Kuwait has reversed the decision of Al-Ahmadi Municipality against the Saudi Arabian Chevron Co. offices in Al-Zour, in which the company was told to remove its offices within one week.

The decision had been issued in view of the oil row between the two countries, which began in May last year after Kuwait claimed the Saudi company was operating in Kuwaiti territory without an official agreement. At the time, Kuwait had halted the issuance of visas to the company’s foreign employees and entry of oil equipment, while Chevron announced that it would stop its operations in the neutral zone due to the harsh decisions it faced from the Kuwaiti side.

Al-Ahmadi Municipality’s statement posted on Chevron’s headquarters earlier this month stated: “Due to the establishment of the site outside your land boundaries in Al-Zour, this is considered an encroachment on state property and is subject to the provision of Decree Law 105 regarding the state property system, and thus the municipality is requiring you to remove the infringing property within one week or the municipality will be required to take legal action against you as per the law.”

However, the reversal of the decision and withdrawal of the warning comes as both sides are nearing a solution to the oil dispute in the neural zone. Last year, the dispute led to the closure of the Khafji oil field, although Kuwaiti State Minister for Council of Ministers Affairs Sheikh Mohammed Al-Abdallah Al-Mubarak confirmed at the time that “the oil dispute would be handled.”

In May last year, the Saudi company had announced the closure of the Wafra oil field due to a lack of response from the Kuwaiti side regarding the steps taken, as well as difficulties in obtaining work permits and continuing production safely.