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Khafji supposedly offline for environmental reasons

The curious case of the Khafji oilfield and the disagreement by Saudi Arabia and Kuwait

Khafji, the 300,000 barrel a day (b/d) oilfield in the offshore sector of the Neutral Zone shared by Saudi Arabia and Kuwait, was taken offline in October 2014, ostensibly for environmental reasons. Those that know the real reasons for the shut-in aren’t saying. One theory is that Saudi Arabia, tired of Kuwait’s aggressive discounting of crude supplies to Asia and its reluctance to shoulder any Opec cuts to prop up prices, took the field offline to teach its smaller neighbour a lesson. In theory, Neutral Zone decisions are taken by both parties. In practice, Saudi Arabia holds the whip hand. Unilaterally shutting in the field doesn’t tally, though, with Saudi Arabia’s apparent conversion s

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