Saudi Arabia, Kuwait to resume activities in disputed Dorra gas field

Saudi Arabia, Kuwait to resume activities in Dorra gas field


A Kuwaiti newspaper has indicated that Saudi Arabia and Kuwait may resume activities in the vastly endowed Dorra offshore gas field.

This development is coming more than six years after the project was abandoned following disagreement over how to share the gas.

Kuwaiti al-Rai newspaper reported on Tuesday that both countries have asked an international consultant to study the development plan for the Dorra offshore gas field and assess the share of the gas for each country from the joint project.

The decision to revisit the project is to both countries interest as the gas would satisfy their increasing gas consumption for power generation and exports.

The independent consultant, which al-Rai did not disclose its identity, will study the production volumes, storage options and cost of development for the field.

Also known as the Neutral Zone,Dorra, which is located in the divided zone between Saudi Arabia and Kuwait, has an estimated 10-11 trillion cubic feet of gas and around 300 million barrels of oil.

In December 2019, Saudi Arabia and Kuwait agreed to end a five-year dispute over the shared Neutral Zone in a deal that will allow production to resume at two oilfields that can pump up to 0.5 per cent of the world’s oil supply.

Saudi Energy Minister Prince Abdulaziz bin Salmanstated last month that a new project would start soon at Dorra.

Two Saudi and Kuwaiti companies can complete the project in the area, which has a promising large quantity of gas, the minister said.

Dorra has long been a bone of contention between Kuwait and Iran, which also lays claim to part of the field. An industry source told Reuters that Riyadh and Kuwait could develop the Dorra gas field away from the area that Iran claims.

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