Saudi, Kuwait Reiterate Joint Ownership of Durra Gas Field

Despite simmering regional tensions, Saudi Arabia and Kuwait have reaffirmed their joint ownership of the lucrative Durra gas field located in the Arabian Gulf. This declaration comes amidst claims from Iran on a portion of the field, which they refer to as Arash.

The two Gulf nations released a joint statement following a high-level meeting, emphasizing their unwavering stance on the entirety of Durra falling within the jointly managed submerged area. The statement further underscores their exclusive right to exploit the field's resources based on international law and existing bilateral agreements.

This reaffirmation of ownership signifies a crucial step towards the planned development of the Durra field. In 2019, Saudi Arabia and Kuwait signed a Memorandum of Understanding (MoU) outlining a joint venture for the project. The agreement paves the way for a single company to manage the field's development, with an estimated production capacity of one billion cubic feet of gas and 84, 000 barrels of condensate per day.

While the economic benefits of the Durra field are undeniable, the issue of ownership has been a source of friction, particularly with Iran. Tehran has expressed interest in negotiating the eastern boundary of the submerged area, a claim categorically rejected by both Saudi Arabia and Kuwait. The GCC (Gulf Cooperation Council) has also thrown its weight behind the two nations, reiterating their exclusive rights to Durra and rejecting any external claims.

The development of the Durra field holds significant implications for the regional energy landscape. The field boasts substantial gas reserves, offering a valuable source of income for both Saudi Arabia and Kuwait. This project could also contribute to their efforts to diversify their economies and lessen their dependence on oil exports.

However, the dispute with Iran casts a shadow on these promising prospects. A potential escalation in regional tensions could disrupt development plans and hinder the project's overall success. Negotiations between the involved parties will be crucial in finding a peaceful resolution and ensuring the smooth development of this crucial energy resource.

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