Kuwait’s oil sector received a shot in the arm this week when it emerged that production in the Partitioned Neutral Zone (PNZ) is to resume after almost a year of no output.

Acting Oil Minister Anas al-Salih told parliament on 29 March that an agreement had been reached with Saudi Arabia, which shares the PNZ with Kuwait, to begin limited production at the offshore 300,000 b/d Khafji field.

Khafji is jointly operated by Kuwait Gulf Oil Co (KGOC) and Aramco Gulf Operations. Prior to...