Saudi Arabia and Kuwait Discover Oil in Neutral Zone After 5 Years

In a major development that could bolster global energy supply and Gulf cooperation, Saudi Arabia and Kuwait have announced a significant oil discovery in the neutral zone, specifically in the North Wafra Wara-Burgan field. This marks the first such discovery since the resumption of production in 2020, with the new well yielding over 500 barrels of crude oil per day. The find is expected to enhance both countries’ status as reliable energy exporters and showcase their continued leadership in exploration and production efforts.

Why in News?

On May 26, 2025, the Saudi Press Agency (SPA) reported a “highly significant” oil discovery by joint operations in the partitioned neutral zone between Saudi Arabia and Kuwait. The well is located approximately 5 km north of the Wafra field. This is the first oil discovery since 2020, following the revival of production in the neutral zone after a five-year hiatus.

Background

• The neutral zone, also called the Partitioned Zone, is a 5,770 sq km area between Saudi Arabia and Kuwait where both countries share equal rights to oil.
• Production in the two main oilfields (Wafra and Khafji) was suspended in 2014 and 2015 due to operational and political issues.
• A 2019 agreement allowed resumption of operations, with production restarting on July 1, 2020.

Key Details of the Discovery

• Location: North Wafra Wara-Burgan field, ~5 km north of Wafra field
• Output: Exceeds 500 barrels per day
• Reported by: Saudi Press Agency (SPA)
• Joint operation: Saudi-Kuwaiti Wafra joint venture

Objectives and Significance

• Strengthen energy security in the Gulf region
• Increase oil output to meet global demand
• Reinforce both nations’ positions as dependable oil suppliers
• Promote exploration and production capabilities

Global Energy Impact

• The discovery may support oil market stability at a time of heightened geopolitical uncertainty.
• With the neutral zone potentially offering up to 500,000 barrels per day, this find could add meaningful volumes to global supply.
• Strengthens OPEC+ leadership and decision-making influence on global energy dynamics.