A new oil field in the neutral area between Kuwait and Saudi Arabia

An official in the Saudi Texaco company has announce that a new oil field was discovered in the neutral area between Saudi Arabia and Kuwait.

Chairman of Texaco in Kuwait Van Allen said that the field is located in the Southern eastern part in the "neutral zone" and that its "production capacity has not estimated yet." He added "before we start production we will draw an evaluation plan with our partner, the Kuwaiti oil company. And we will make seismic operation." He added that continuous production will not start before the end of 1999.

However, production in the neutral area between Kuwait and Saudi Arabia was in 1997 estimated at 240,000 barrels per day that the two countries share equally. This "neutral zone" was established according to a treaty signed between the two countries in 1992. The two countries are represented by the two state-run companies,The Kuwait Oil Company and the Saudi Texaco company. The resources of the "neutral zone" are shared equally between the Kingdom of Saudi Arabia and the State of Kuwait. Saudi Arabian Texaco has operated on behalf of the Kingdom in the "neutral zone" since 1984, when Texaco purchased Getty Oil Company and assumed its rights in the zone.