Saudi Arabia and Kuwait have confirmed a significant new oil discovery in the Partitioned Neutral Zone (PNZ), marking the first find since the resumption of production operations in 2020.The discovery was made in the North Wafra Wara-Burgan field, about 5 kilometers north of the original Wafra field.

According to the Saudi Press Agency, the Wara reservoir in the Wara-Burgan-1 well is producing over 500 barrels per day of crude oil, with an API gravity of 26 to 27 degrees.“This marks the first discovery since the resumption of production operations in the Partitioned Zone and its adjacent offshore area in mid-2020,” said the Saudi government in an official statement.

The Partitioned Neutral Zone, created in 1922 to resolve a territorial dispute between the two nations, has long been a shared production area for the OPEC giants.

Saudi Arabia emphasized the broader significance of the find, stating it would boost the kingdom and Kuwait’s reputation as “reliable global energy suppliers” and demonstrate their continued strength in oil exploration.

Meanwhile, Kuwait is pushing ahead with bold plans to ramp up capacity. “We aim to invest as much as $50 billion to raise oil production capacity to above 3 million barrels per day over the next five years,” said Shaikh Nawaf Al-Sabah, deputy chairman and CEO of Kuwait Petroleum Corporation.

Kuwait’s long-term goal, outlined in its 2040 strategy, is to boost sustainable production to 4 million bpd, including volumes from the PNZ. Currently, Kuwait ranks as OPEC’s fifth-largest producer.

The announcement comes as Saudi Arabia leads OPEC+ efforts to manage global supply, signaling a willingness to weather short-term price dips to counter overproduction by other members like Kazakhstan and to discipline U.S. shale producers.