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Welcome to the Neno's Place!

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    The gas-rich Al-Durra field ignites the dispute between Iran and Kuwait

    Rocky
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    The gas-rich Al-Durra field ignites the dispute between Iran and Kuwait Empty The gas-rich Al-Durra field ignites the dispute between Iran and Kuwait

    Post by Rocky Wed 05 Jul 2023, 5:20 am

    The gas-rich Al-Durra field ignites the dispute between Iran and Kuwait

    The gas-rich Al-Durra field ignites the dispute between Iran and Kuwait 14787



    Arab and international
       


    Economy News _ Baghdad
    The Dorra field shared between Kuwait and Saudi Arabia has returned to the limelight again with Kuwait sending a firm message rejecting Iran's claims that it has rights in the field. What is the story of this field and what is behind Iranian claims for a share in this field for Kuwait's share?
    Al-Durra field is of great importance on the economic and political levels, as its importance lies in being an expected storehouse for the production of a large amount of gas, whose prices have jumped since the outbreak of the Ukrainian war, but its location, which is located in a border area, has disrupted its production since its exploration date in the sixties, according to a report by the "Channel" website. Arabic".
    The offshore field, discovered in 1967, is expected to produce one billion standard cubic feet of gas per day and 84,000 barrels per day of condensate, according to a previous statement issued by the Kuwait Petroleum Corporation.
    A firm Kuwaiti message regarding the Dorra field
    Kuwaiti Oil Minister Saad Al-Barrak affirmed, on Monday, his country's total rejection of what he described as "Iranian allegations and measures" regarding the offshore Dorra gas field, stressing that "the field is a Kuwaiti-Saudi natural wealth and no other party has any rights." In it, even the demarcation of the maritime borders was decided.
    The Kuwaiti reaction comes after Tehran threatened to start drilling and exploration operations in the Dorra gas field, which is located in the submerged area shared between Kuwait and Saudi Arabia, and Tehran claims that part of it is located in its uncharted territorial waters with Kuwait.
    The ownership of this field is equally between Saudi Arabia and Kuwait, like other fields in the common area between Saudi Arabia and Kuwait.
    Al-Barrak added, "We were surprised by the Iranian allegations and intentions regarding the Dorra field, which contradict the most basic rules of international relations."
    He stressed that "the Kuwaiti and Saudi parties are in complete agreement as one negotiating party," calling on "Iran to first commit to demarcating the international maritime borders before it has any right in the Dorra field."
    And according to what was quoted by the official Kuwaiti News Agency "KUNA", quoting an official source in the Ministry of Foreign Affairs, which it did not name, that the State of Kuwait renews its call to Iran to start negotiations on demarcating the maritime borders with Kuwait and Saudi Arabia as one negotiating party.
    Here are the developments of the agreement between Kuwait and Saudi Arabia about the field and the Iranian position.
    v Exploration began in Durra in 2001, which prompted Kuwait and Saudi Arabia to reach an agreement to demarcate their maritime borders and plan to develop joint oil reservoirs.
    Although the gas field located between Saudi Arabia and Kuwait was discovered in the sixties of the last century in the waters of the Persian Gulf, the first agreements to benefit from its reserves were between Kuwait and Saudi Arabia in December of 2019, as the two parties signed a memorandum of understanding at that time that stipulated: Joint work on the development and exploitation of the Dorra field.
    The first memorandum of understanding also provided for the facilitation of entry and exit to the land divided zone, to reach oil installations, fields and wells on both sides, following the meeting of the Kuwaiti-Saudi permanent joint committee.
    At that time, Saudi Energy Minister Prince Abdulaziz bin Salman had revealed the establishment of a new gas project in the offshore Dorra field, and that work on its implementation would begin soon.
    And he stressed, a day after signing an agreement with Kuwait, which ended a dispute over the neutral zone, also known as the divided one, which the two countries share, that Al-Durra is a gas field in the joint area that has not been utilized until now, pointing to the importance of speed in its completion, in addition to the need of the two parties for energy produced from gas in the field.
    In March 2022, Kuwait signed a document with Saudi Arabia to develop the Dorra field.
    But Iran said the document was "illegal" because Tehran participates in the field and must join any measure to operate and develop it.
    The Iranian Foreign Ministry said at the time that "there are parts of it in the undefined waters between Iran and Kuwait."
    Iran's oil minister, Javad Auchi, also said at the time that his country would "soon" start exploration in the Arash gas field (the Persian name for the Dorra field) in the Persian Gulf, in response to a Kuwaiti-Saudi deal to develop the joint gas field.
    On March 28, 2022, Oji said that while Iran tends to negotiate and cooperate with Kuwait and Saudi Arabia to develop the gas field, "their unilateral measures will not prevent" Tehran from moving forward with its own plans, and Kuwait responded that the field is Saudi-Kuwaiti, not Iranian.
    Two days before the Iranian minister's statement, Saudi Energy Minister Prince Abdulaziz bin Salman confirmed his country's agreement with Kuwait to discuss the crisis of the Dorra gas field located in the divided area with Iran, indicating their intention to develop it in order to benefit from its huge potential.
    In April 2022, Saudi Arabia and Kuwait invited Iran to negotiate over the Dora field, as a statement by the Saudi and Kuwaiti foreign ministries said at the time that the two countries were renewing "in their capacity as one negotiating party" Iran's call to demarcate the eastern borders of the submerged divided area between the two Gulf countries. .
    The statement added that Kuwait and Saudi Arabia "called in the past to the Islamic Republic of Iran to negotiate the demarcation of the eastern borders of the submerged divided region, but these calls were not met."
    In May of the same year, Iran's ambassador to Kuwait, Muhammad Irani, told the Kuwaiti newspaper, Al-Rai, that his country had sent an official invitation to the Kuwaiti side concerned with the talks regarding the Durra field to sit down with the Islamic Republic of Iran "to resume negotiations between the two countries from where they left off in 2014."
    Reasons for contention Exploration concessions overlap in the area
    The Dorra field lies at the intersection of competing territorial claims by Kuwait, Iran and Saudi Arabia, in the shallow waters offshore in the northern Persian Gulf, TAQA reports.
    Iran and Kuwait have held talks for years to settle the dispute over the continental shelf area on the maritime borders between the two countries, but they did not produce any result.
    The dispute between Iran and Kuwait dates back to the sixties of the last century, when Kuwait and Iran were granted overlapping maritime concessions due to the indefinite maritime borders. The two concessions overlap in the northern part of the Dorra field.
    On the other hand, Kuwait and Saudi Arabia developed a neutral zone, known as the Divided Neutral Zone, covering the land and sea border area, so that all hydrocarbon fields are developed jointly between the national oil companies of the two countries.
    In the mid-1960s, the gas field was discovered at a time when the maritime borders were not well defined, and gas was not considered a strategic asset at the time.
    The field, which was discovered in 1960, contains large reserves of gas. The recoverable gas reserves from the Dorra field are estimated at about 200 billion cubic meters, in addition to more than 300 million barrels of oil.
    The borders drawn by British politician Percy Cox in the year 1922, through the Uqair Treaty, adopted by the three countries, were not clear with regard to the treasures that are filled within, and this is what happened in the region divided between Saudi Arabia and Kuwait, which has two oil fields that can produce 500 thousand. barrels per day, in addition to the Dorra field, from which gas is expected to be produced during the coming period, according to the Al-Arabiya report.
    In 2012, Al-Khafji Company, a joint venture between Aramco Gulf Operations and the Kuwait Gulf Oil Company, awarded the rights to development and production to the international oil company, Shell.
    The efforts of Kuwait and Saudi Arabia to jointly benefit from the Dora field gained great momentum with the signing of a document between the two countries on March 21, 2022, to develop and exploit the gas-rich field to produce one billion standard cubic feet of natural gas per day and 84,000 barrels of condensate per day, to be shared by the two countries, which sparked Iran's anger.
    The document stipulates that the Al-Khafji Joint Operations Company agree to choose a consultant who will conduct the engineering studies necessary to develop the field, according to the best methods, modern technologies and practices that take into account safety, health and environmental preservation, as well as developing the most efficient and effective engineering designs in terms of capital and operation.
    It is noted that although the field is a joint property between Saudi Arabia and Kuwait, and that the two countries confirmed that they are one party in dealing with Iran in this file, Iran disputes Kuwait in the field more than Saudi Arabia. Because the region that Tehran claims to own is located on the Kuwaiti side, and therefore it is trying to extract part of Kuwait's share, not Riyadh's.


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    Added 07/05/2023 - 11:55 AM
    https://economy-news.net/content.php?id=35014
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