After reaching the new contract, in January Saudi Arabia and Kuwait issued contracts to study the development plan for the Dorra offshore gas field, which has an estimated 10-11 trillion cubic feet of gas and approx 300 million barrels of oil. The development of the field was originally supposed to start in 2012 -2014.
The offshore project is particularly attractive to both countries. Saudi Arabia has ambitions to ramp up its scope into natural gas as a key growth driver, while Kuwait is beginning to import liquid natural gas(LNG) as its domestic demand is increase. In January the country signed a 15-year agreement with state-run Qatar Petroleum for three million tonnes of LNG per year.
Rystad expects development of Dorra to begin in 2024, with the field coming online in the second half of this decade
“It’s a long journey because, while it’s a proved discovery, both countries have to jointly assess what sort of development requirement it needs for them to growth gas production from the field,” explains Saraswat.