According to a recent report by MEED magazine, contractors are preparing to submit bids for a major $10 billion gas production project with Khafji Joint Operations Company. The project focuses on gas extraction from the Khafji field, located in the Neutral Zone between Kuwait and Saudi Arabia.
The report states that Khafji Joint Operations is advancing a major gas production project at the Dorra offshore field, located in the Gulf waters within the Neutral Zone shared by Kuwait and Saudi Arabia.
According to MEED, contractors are preparing bids for four engineering, procurement, and construction (EPC) packages as part of the Dorra gas field development project, valued at approximately $10 billion. The project includes three offshore packages and one onshore package.
Khafji Joint Operations, a partnership between Saudi Aramco Gulf Operations Company (AGOC) and Kuwait Gulf Oil Company (KGOC), a subsidiary of Kuwait Petroleum Corporation, issued tenders for the project in August last year.
MEED reports that progress on the Dorra field project has been delayed due to a geopolitical dispute over its ownership. Kuwait and Saudi Arabia assert that the field lies entirely within their shared territorial waters, known as the Neutral Zone or Divided Zone, and reject Iran’s claim. In contrast, Iran argues that the field extends into its territory and insists on being included as a stakeholder in any development project.
In February 2024, Kuwait and Saudi Arabia reaffirmed their claims to the Dorra field in a joint statement issued during an official meeting.
Project Packages
The MEED report confirmed the scope of the Engineering, Procurement, and Construction (EPC) works for the Dorra gas field development project packages, along with their current submission dates, are as follows:
- Package 1 – Seven marine covers and in-field lines – March 24.
- Package 2A – Seven Production Deck Modules (PDMs) and their corrosion-resistant alloy-lined piping connected to the gas compression plant – June 30.
- Package 2B – Compression and Auxiliary Platforms, Accommodation Platform, Main Pipelines and Associated Cables Connected to the Shore – June 30.
- Package 3 – Onshore Gas Processing Plant – June 30.
Bidders
Bidders for the three marine packages include the following contractors:
- Lamprell (Saudi Arabia/UAE)
- Larsen & Toubro Hydrocarbon Energy (India)
- McDermott (USA)
- NMDC Energy (UAE)
- Saipem (Italy)
Marine Packages
Bidders for the marine packages have the option to submit a joint bid. Sources informed MEED that a proposal has been put forward for marine packages 2A and 2B.
The Dorra field is estimated to hold 20 trillion cubic feet of gas and approximately 310 million barrels of oil.
In September 2023, MEED reported that Aramco and Kuwait Petroleum Corporation (KPC) had selected the French company Technip Energy to conduct the pre-feed engineering and design (PFE) and feeder works for the Dorra offshore field development project.
The initial feed for the Dorra field development project was completed more than a decade ago. However, the engineering design required updates to incorporate advancements in technology before the project could reach a final investment decision.
Kuwait and Saudi Arabia have collaborated on developing the Dorra offshore field since its discovery in 1965. The two countries plan to produce approximately “One billion cubic feet of gas per day” and have agreed to share the production equally.
Source: Al Qabas
