Saudi Arabia and Kuwait reached an agreement to resume oil production from two jointly-run fields in the Neutral Zone, which could bring 320,000 bpd online in a year.

The agreement was signed in Kuwait City by HRH Prince Abdulaziz Bin Salman, Saudi Minister of Energy and HE Khaled al-Fadhel, Kuwaiti Oil Minister and Minister of Electricity and Water.

The two countries halted output from the jointly-run oilfields - Khafji and Wafra - in the so-called Neutral Zone for almost four years, cutting some 500,000 barrels per day (bpd)of heavy crude or 0.5 per cent of global oil supply.

Saudi Arabia’s energy minister said on Wednesday the Khafji oil field which is jointly operated with Kuwait would produce 320,000 oil barrels per day at the end of 2020, Saudi-owned al-Arabiya TV reported.

“With the signing of this new accord, both parties have reached consensus that now is the right time to resume production in this zone. Both sides will work to ensure production resumption at the earliest opportunity,” Saudi Aramco President and CEO Amin H. Nasser said in a statement.