The Dorra offshore gas field, located in the neutral zone shared by Saudi Arabia and Kuwait, is a major development project expected to produce 1 billion cubic feet per day of gas and 84,000 barrels per day of condensate. The field is being developed by Al Khafji Joint Operations (KJO), a venture between subsidiaries of Saudi Aramco and Kuwait Petroleum Corporation.

Contracting and Project Packages

KJO is advancing multiple onshore and offshore contract packages, with the total project value estimated to exceed $10 billion. At least four major packages were offered last year. India's Larsen & Toubro (L&T) was previously selected for offshore Package 1, which involves at least seven offshore wellhead jackets. Bids are currently under evaluation for onshore Package 3, which includes a monoethylene glycol recovery plant and water treatment facilities. Contractors said to have submitted bids for this package include L&T and Spain's Tecnicas Reunidas, with an award decision expected within weeks.

Offshore packages 2A and 2B encompass multiple offshore facilities, subsea pipelines, and over 50,000 tonnes of fabrication work. Package 2A includes gas wellhead topsides, flowlines, and umbilicals, while Package 2B involves a large central gathering platform complex, export pipelines, and cables. The bidders for these packages could not be confirmed. Separately, Kuwait and Saudi Arabia are also conducting bidding for individual gas processing plants to handle their respective shares of the field's output.

Geopolitical Dispute

The project's progress has been hampered by a long-standing geopolitical dispute over the field's ownership. Iran, which refers to the field as Arash, claims sovereignty and has historically described the Saudi-Kuwaiti development as "illegal." In September 2024, Iran's Ministry of Foreign Affairs strongly reiterated its claim, rejecting what it called "one-sided claims" from Kuwait. Iran has stated that resolving the dispute requires bilateral dialogue and a constructive atmosphere. Despite this, Kuwait's Oil Minister stated in February that the much-delayed project no longer faces obstacles and that tenders would be issued.

Project Outlook and Design

Analysis suggests the project is expected to move forward, with contract awards anticipated in the coming months. European contractor Technip Energies, responsible for the front-end engineering and design (FEED) phase, conducted engagement meetings with bidders in 2024 to outline the project's workscope. Technip Energies was previously selected by the joint venture to perform pre-FEED and FEED studies for the Dorra field.