Saudi Arabia and Kuwait are aiming to develop future projects at the two oilfields in the Neutral Zone region that is owned by the two Persian Gulf neighbours.

A joint committee involving officials from the two countries met this week to explore upcoming project plans at the two oilfields, aimed at boosting production from the joint region that is also known as the “Divided Zone,” Kuwait’s official news agency KUNA said.

However, no further details were revealed by the two nations on which projects are likely to be taken up in the short-to-medium term for boosting oil production from the Neutral Zone region.

The joint region is home to two key oilfields— the offshore Khafji and onshore Wafra fields that reinstated oil production in 2020, after being shut-in for more than four years, owing to operational disputes.

The two oilfields are said to be together capable of producing more than 500,000 barrels per day of oil, but the actual production is said to be considerably lower due to technical challenges from the field’s closure and restrictions being imposed by the Opec+ grouping.

The talks this week also examined any potential obstacles that could hinder the completion of "strategic" projects in the jointly run oilfields of Khafji and Wafrah, a statement by the Kuwait Ministry of Oil claimed.

The oil production in the Saudi-Kuwait Neutral Zone is divided equally between the two countries.

While the combined oil production from the two fields could not be confirmed by Upstream, they are said to be producing more than 300,000 barrels per day, combined, according to industry sources.

While Khafji, the offshore part of the zone, is operated by Saudi Aramco and state-run Kuwait Gulf Oil Company (KGOC), Wafra— the onshore field, is operated by Saudi Arabian Chevron (a subsidiary of US-based Chevron) with KGOC.