Oil and Gas News
Saudi Arabia, Kuwait, and Iran Engage in Dispute over Gas Field in Resource-Rich Gulf
Saudi Arabia and Kuwait have asserted their rights over a disputed gas field in the Gulf, challenging Iran's claims.
The field, known as Arash in Iran and Dorra in Kuwait and Saudi Arabia, is considered a joint ownership between Saudi Arabia and Kuwait. The two countries maintain that they have full rights over the field, rejecting Iran's objections. Last year, Kuwait and Saudi Arabia signed an agreement to develop the field, a move that Iran labeled as "illegal." The dispute dates back to the 1960s when Iran and Kuwait awarded overlapping offshore concessions. Talks between Iran and Kuwait over their disputed maritime border area have been unsuccessful.
The National Iranian Oil Company expressed readiness to begin drilling in the joint Arash oil field, allocating significant resources for its development. The field is estimated to hold recoverable reserves of around 220 billion cubic meters. However, Saudi Arabia and Kuwait continue to assert their rights over the field. In 2001, Iran's drilling activities in the field prompted Kuwait and Saudi Arabia to agree on a maritime border deal, leading to joint development plans for the offshore zone.
Amidst these tensions, Saudi Arabia and Kuwait have called on Iran to engage in negotiations regarding the demarcation of the eastern border of the disputed area. Both countries emphasize their exclusive ownership of the natural resources in the Al-Durra area, including the gas field. Iran, on the other hand, maintains its stake in the field and opposes the agreement signed by Kuwait and Saudi Arabia. The recent diplomatic rapprochement between Saudi Arabia and Iran, brokered by China, has raised hopes for reduced tensions in the region. However, the dispute over the gas field remains a contentious issue.