A great discovery in the Saudi-Kuvian neutral zone
Saudi Arabia and Kuwait have discovered new oil deposits in the North Wafra Wara-Burgan field. It is located only 5 km from another field of this oil company and can bring over 500 barrels of oil a day, with a density of API of 26 to 27 degrees (it means the quality of oil on a scale of 10-50, the higher the value, the better the oil). It is worth paying attention primarily to the location of this discovery – it is a divided neutral zone.
What is the “divided zone”?
Is an area with an area of 5770 km2 between borders Saudi Arabia and Kuwait. It was created in 1922 to resolve the territorial dispute, and in the 1950s the first deposits were discovered on it oil in waffer. The discovery announced this week is The first since the resumption of production activities in the divided zone and the adjacent sea area in mid -2020, a divided zone is a neutral area that does not belong to any of these two countries. About 0.5 percent extracts in it global oil production.
An important event for the Arab oil market
“The discovery is considered to be Extremely significant, taking into account its positive impact on the position of both countries as reliable global energy suppliers and their capabilities in the exploration and production sector, “Saudi Press Agency (SPA) said. Arab media already describe that before this discovery Kuwait announced to invest as much as 50 billion dollarsto increase your oil production capacity to over 3 million barrels a day in the next five years.
More oil is needed
The organization of countries exporting oil (OPEC) is to announce that in July will increase oil production to 411,000 barrels a day Reuters found out. One of the main reasons for this change is to be increased demand. It is worth mentioning here that the head of the ZEA Ministry himself appealed to the OPEC+ countries to provide the market with access to raw materials, precisely because of the growing demand. The price of oil dropped in April to the lowest level in four years – below 60 dollars For the barrel after OPEC+ announced the acceleration of production growth in May, and the American duties aroused concerns about global economic weakness. Currently, you have to pay $ 61.7 for a barrel of oil. and for Brenet oil – $ 64.2
Read also: “Huge “white gold” deposits were discovered worth $ 1.5 trillion“.
Sources: SPA, Oilprice, The Arab Weekly, STOOQ.pl, ReutersMiddle East economy [X]