Page 4 - MEOG Week 50 2022

MEOG COMMENTARY MEOG

AGOC, KGOC implement

Dorra gas deal

Saudi and Kuwaiti state oil firms have signed a deal to develop

an offshore gas field, part of which is disputed by Iran

KUWAIT/SAUDI SUBSIDIARIES of Saudi Aramco and Kuwait cubic metres of gas and around 300mn barrels
Petroleum Corp. (KPC) this week signed a of oil, has been stalled since 2013. As with the
memorandum of understanding (MoU) on the development of the PNZ’s oil assets – Al-Khafji
WHAT: development of the Dorra gas field in the two (offshore) and Wafra (onshore) – gas output will
Affiliates of Aramco and countries’ shared offshore area. be divided evenly between KGOC and AGOC.
KPC have signed a deal Under the patronage of energy ministers The offshore portion of the zone also includes
to develop the Dorra Prince Abdulaziz bin Salman Al Saud and Dr. the minor Hout oilfield, where US services firm
gas field to produce 1bn Bader Hamid Al-Mulla, Kuwait Gulf Oil Co. McDermott previously carried out pipeline and
cubic feet per day of (KGOC) and Aramco Gulf Oil Co. (AGOC) commissioning work for the partners’ Khafji
gas and 84,000 bpd of agreed to jointly develop the field in the Parti- Joint Operations (KJO) entity. Previous efforts
condensate. tioned Neutral Zone (PNZ). to develop Dorra had been designed to yield
KGOC is the PNZ-focused affiliate of Kuwait 600mmcf (17 mcm) per day of gas.
WHY: Oil Co. (KOC), itself a subsidiary of the Kuwait In January, KGOC and Saudi Arabian Chev-
To-date, production from Petroleum Corp. (KPC) and works with Aramco ron (SAC), Aramco’s representative in the Wafra
the shared area has Gulf Co-operation Co. (AGOC) in Khafji Joint Joint Operations (WJO) area, signed an MoU for
largely comprised oil, Operations (KJO) area. the export of gas from the onshore field which
though its development This week’s signing ceremony was signed by has an oil production capacity of around 250,000
has also been AGOC president and CEO Ali bin Saleh Al-Ajmi bpd.
interrupted. and KGOC CEO Khaled Nayef Al-Otaibi. KGOC’s deputy CEO Muhammad Salem
During a visit to Kuwait by Saudi Crown Al-Haimer told KUNA that gas flows are
WHAT NEXT: Prince Mohammed bin Salman (MbS) in March, expected to begin at 12 mmcf (340,000 cubic
Saudi and Kuwaiti the parties agreed to will “leverage modern tech- metres) per day of gas, rising over the first half of
efforts appear to be nologies” to increase gas production from the the year to 40-50 mmcf (1.13-1.4 mcm) per day
ratcheting up in the PNZ asset to 1bn cubic feet (28mn cubic metres) per and reaching 80-100 mmcf (2.27-2.8 mcm) per
as both countries work day alongside 84,000 barrels per day (bpd) of day within four years.
to expand their maximum condensate. The gas will be supplied to KOC for use
production capacities. Work on the field, which holds 280-310bn in the company’s gas networks. Meanwhile,

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