Kuwait and Saudi Arabia have reached an agreement to resolve their long-standing dispute over the oil-rich Neutral Zone, according to Kuwait’s state news agency KUNA. The deal includes both an agreement and a memorandum of understanding aimed at restoring cooperation in the area.
Located along Kuwait’s southern border with Saudi Arabia, the Neutral Zone is home to the Al-Khafji and Al-Wafra oil fields. Production in both fields was suspended about five years ago due to disagreements, halting an output of roughly 500,000 barrels per day—around 0.5% of global oil supply.
Kuwaiti Oil Minister Khaled Ali al-Fadhel welcomed the breakthrough, stating on Twitter his appreciation for the agreement and for the anticipated resumption of production. The move is expected to restore a significant portion of oil output from the region, strengthening both countries’ energy sectors and contributing to global supply stability.
