Overview of the Dorra Field Development

The Dorra field, located in the neutral zone between Saudi Arabia and Kuwait, is being developed by Khafji Joint Operations (KJO), a joint venture between subsidiaries of Aramco and Kuwait Petroleum Corporation (KPC). The field is expected to produce 1 billion cubic feet per day of gas and 84,000 barrels per day of condensate. Iran disputes the Saudi-Kuwait claim to the field, which it refers to as Arash.

Progress on Engineering, Procurement, and Construction (EPC) Packages

Aramco Gulf Operations (AGO), a subsidiary of Saudi Aramco, is nearing the decision phase on two EPC packages related to the Khafji gas plants, which will process Saudi Arabia’s share of Dorra gas. Technical and commercial offers have been submitted by two competing international consortia: one comprising Spain’s Tecnicas Reunidas and China’s Sinopec, and another grouping India’s Larsen & Toubro (L&T) and South Korea’s Samsung E&A. Both consortia submitted bids earlier this month and are considered to have a fair chance. AGO is likely to select its preferred contender within weeks and may award both packages to the same contractor to optimize costs and improve project efficiencies. The Khafji gas plant is expected to process about 700 million cubic feet per day of gas.

Separate Gas Facilities in Kuwait and Other Packages

While AGO progresses with the Khafji gas plants, Kuwait Gulf Oil Company (KGOC) is also developing a gas-handling terminal in Kuwait, though this is still in an early phase. Additionally, KJO is advancing an onshore package that includes a monoethylene glycol (MEG) recovery plant, water treatment, and related facilities, with Tecnicas Reunidas and L&T competing for this package. Multiple offshore packages are also available for the Dorra development. Together, the onshore and offshore packages are estimated to be worth upwards of $10 billion.

Urgency and Geopolitical Context

Despite Iran’s objections, Saudi Arabia and Kuwait are swiftly progressing with the Dorra development. Industry sources indicate that KJO is prioritizing tenders for various packages, with an urgency to award contracts within weeks, even amid the ongoing US-Israel war on Iran. Aramco declined to comment on the Khafji bid process, and Upstream has reached out to the involved companies for additional comments.