Saudi Arabia, Kuwait Shelve Dorra Offshore Gas Project

Saudi Arabia and Kuwait have decided to call off the development of Dorra offshore gas field because of disagreement over how to share the gas back on land, Reuters reported citing a senior Kuwaiti energy source.

Dorra has been a bone of contention between Kuwait and Iran, which also lays claim to part of the field, Reuters said.

First agreement for the development was signed in 2000 but with little progress during these 13 years, the project has now been shelved indefinitely.

According to Reuters the initial plan was to share an offshore facility and pump it down separate pipelines to the project partners. However, last year Saudi Arabia began pressing for all the gas to be piped first to Khafji, a town on the Saudi side of the border, before piping Kuwait's share overland.

A route via Saudi Arabia raises security of supply issues for Kuwait, Reuters said.

But the original plan to pump its share direct to a Kuwaiti beach near a big gas fired power plant is also stuck because of land disputes between Kuwaiti energy companies, the news agency added.