KUWAIT OIL PRODUCTION 2.8 MBD

PLATTS - Kuwait's crude oil production currently stands at 2.8 million b/d, the country's oil minister Bakheet al-Rashidi said Wednesday, up about 90,000 b/d from June levels.

That would be the highest since December 2016, the last month before OPEC's supply cut agreement went into force, when Kuwait reported production of 2.84 million b/d.

OPEC is set to reveal its July production figures in its closely watched monthly oil market report August 13.

The producer group on June 23 agreed with Russia and nine other allies on a 1 million b/d output increase to head off any supply shortages emerging from US sanctions on Iran and Venezuela's continued decline, among other market disruptions.

OPEC has not said how those extra barrels will be allocated among its members.

In comments to Kuwait's Al-Rai newspaper, Rashidi said: "We are reaching a very stable stage for the crude market, whether for producers or consumers."

He added that he was optimistic that crude production in the Neutral Zone shared by Kuwait and Saudi Arabia could resume soon.

The two countries were aiming for a December restart of production at the fields, which could bring up to 500,000 b/d to the market at a time when many analysts expect global supplies to be tight.

Rashidi is expected to meet with Saudi energy minister Khalid al-Falih in November to discuss the issue.

Crude output in the Neutral Zone fields is shared equally between Saudi Arabia and Kuwait.

The Khafji field is part of the Al-Khafji Joint Operations, owned 50:50 by Saudi Arabia's Aramco Gulf Operations Co. and Kuwait Gulf Oil Co.

Aramco, the field's operator, unilaterally shut production down in October 2014, citing new government emissions standards for gas flaring.

Japan's Toyo Engineering earlier this month said it had been retained to begin preparations for a restart of Khafji in early 2019.

The Wafra field is operated by KGOC and Saudi Arabian Chevron, and was shuttered in May 2015, with Chevron saying it had encountered difficulties in securing work and equipment permits.

As for the threat of closures to the vital Strait of Hormuz, Rashidi said that Gulf countries "have plans ready for implementation in emergencies," without elaborating.

Iran has threatened to prevent other Middle East producers from exporting their crude through the strait if Iran's own exports are shut in due to US sanctions, which were supported by many Gulf Arab countries.

Some 18.5 million b/d of oil shipments transit the strait at the tip of the Persian Gulf, according to the US Energy Information Administration.

Saudi Arabia last week suspended its shipments through the Bab al-Mandab strait between the Gulf of Aden and the Red Sea, after it said Yemeni Houthis attacked two of its tankers.

Houthi authorities late Monday announced a two-week halt to its military activities in the Red Sea, unless the Saudi-led coalition seeking to oust the Houthis from Yemen escalates its attacks.

Saudi Arabia has accused its chief geopolitical rival Iran of backing the Houthi forces, a charge Tehran has denied.

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Earlier:

2018, July, 2, 12:15:00 KUWAIT'S OIL UP REUTERS - Kuwait will raise oil output by 85,000 barrels per day (bpd)starting on Sunday, part of an agreement between OPEC and non-OPEC producers to increase production by one million bpd, Energy Minister Bakhit al-Rashidi told a local newspaper on Saturday.

2018, June, 4, 13:40:00 OIL NEED INVESTMENT BLOOMBERG - Energy ministers from Saudi Arabia, the United Arab Emirates, Kuwait, Algeria and Oman held an unofficial consultative meeting on Saturday in Kuwait City, the Kuwait News Agency reported, citing a statement from the joint ministerial monitoring committee of OPEC and non-OPEC countries. They discussed market conditions and the producers’ compliance with the global output cuts, it said.

2018, April, 18, 13:02:00 KUWAIT'S INVESTMENT $113 BLN AOG - Kuwait plans to invest $113bn over the next five years to enhance oil exploration and production activities both inside and outside the country

2017, December, 25, 20:10:00 SHELL - KUWAIT LNG BLOOMBERG - Kuwait Petroleum Corp. signed a 15-year liquefied natural gas import deal with Royal Dutch Shell Plc to help the oil exporting nation meet growing domestic energy demand.

2017, March, 27, 18:55:00 HIGH LEVEL OF CONFORMITY The Joint OPEC/Non-OPEC Ministerial Monitoring Committee (JMMC) convened in Kuwait City for its second meeting on 26 March 2017. It announced that, based on the Report of the Joint OPEC/Non-OPEC Technical Committee (JTC) for the month of February 2017, OPEC and participating non-OPEC countries have continued their progress towards full conformity with their voluntary adjustments in production.

2016, July, 6, 18:05:00 KUWAIT'S DEFICIT: $18.2 BLN Kuwait's budget deficit reflects the impact lower oil prices have had on crude exporters, particularly Gulf Arab monarchies that rely on oil revenues to support generous subsidies, welfare benefits and public sector wages.

2015, November, 12, 20:00:00 RUSSIA & KUWAIT COOPERATION Russia’s President Vladimir Putin met with Emir of Kuwait Sabah Al-Ahmad Al-Jaber Al-Sabah this week to discuss opportunities for cooperation in the fields of energy and diplomacy. The two countries also signed a memorandum for military technical cooperation. Русский | English