OIL FLOW RESUMES IN WAR TORN ONSHORE NEUTRAL ZONE

March 9, 1992
Oil production has resumed in the war ravaged onshore fields of the Neutral Zone between Saudi Arabia and Kuwait 1 year after the end of Persian Gulf War. Initial production of about 40,000 b/d is expected to rise to 60,000 b/d by yearend. Prior to the January-February 1991 war to oust occupying Iraqi military forces from Kuwait, the Neutral Zone's Wafra, South Umm Gudair, and South Fuwaris onshore fields produced about 135,000 b/d.

Oil production has resumed in the war ravaged onshore fields of the Neutral Zone between Saudi Arabia and Kuwait 1 year after the end of Persian Gulf War.

Initial production of about 40,000 b/d is expected to rise to 60,000 b/d by yearend.

Prior to the January-February 1991 war to oust occupying Iraqi military forces from Kuwait, the Neutral Zone's Wafra, South Umm Gudair, and South Fuwaris onshore fields produced about 135,000 b/d.

BACKGROUND

Texaco's Getty unit, under a concession granted by Saudi Arabia, and Kuwait Oil Co. (KOC) conduct onshore Neutral Zone operations through the Joint Operations (JO) entity, which consists of three departments overseen by a joint committee and staffed 50-50 by Texaco and KOC.

Central gathering facilities in Wafra field collect production from the three fields and transport it via pipeline to Texaco's 100% owned refinery at Mina Saud, where export facilities offload crude and products.

Texaco, Kuwaiti, and Saudi officials participated in a ceremony Mar. 3 to start production from wells damaged in the conflict and restored by international wild well control companies (OGJ, Jan. 20, p. 14). Texaco's share of JO production is 50%.

Offshore Neutral Zone production, operated by japan's Arabian Oil Co., was quickly restored to more than 300,000 b/d after the war.

WAR DAMAGE HEAVY

Texaco noted damage was heavy in the JO area.

In Wafra field, 293 of 355 wellheads were damaged by explosives along with extensive damage to subsurface producing equipment and surface facilities including storage tanks and related equipment. Texaco's Mina Saud refinery also sustained heavy damage in the war, and its main offices and other facilities were looted or damaged.

In the wake of Iraq's August 1990 invasion of Kuwait, Texaco evacuated employees and families to Saudi Arabia and shut down the oil fields and the Mina Saud refinery.

It conducted administrative work from Riyadh, Khobar, and Khafji, Saudi Arabia.

With the allied victory, Texaco formed a reentry team to return to Neutral Zone operations once military forces had cleared the producing areas of unexploded ordnance and mines.

Copyright 1992 Oil & Gas Journal. All Rights Reserved.