At least two contracting groups are set to compete for key engineering, procurement, and construction (EPC) packages related to the Dorra offshore gas field, which is located in the neutral zone shared by Saudi Arabia and Kuwait. The field is being developed by a joint venture of subsidiaries owned by Aramco and Kuwait Petroleum Corporation (KPC) and is expected to produce 1 billion cubic feet per day of gas and 84,000 barrels per day of condensate.

Competition for EPC Packages

A consortium of Spain’s Tecnicas Reunidas and China’s Sinopec is poised to compete with a grouping of India’s Larsen & Toubro and South Korea’s Samsung E&A for two EPC packages from Aramco subsidiary AGO. These packages are related to the potential processing of Saudi Arabia’s share of the gas from the Dorra field. The two consortia are expected to submit their bids to AGO next month, following minor delays from an originally anticipated October submission, with the new deadline likely at the end of December.

Khafji Gas Plant Development

The Aramco subsidiary initiated the bid process earlier this year for the Khafji gas plants. The Khafji gas plant is planned to process about 700 million cubic feet per day of gas, with the work likely to be executed through the two EPC packages on offer.

Separate Gas Handling Facilities

While AGO is building gas handling facilities for Saudi Arabia's share, Kuwait Gulf Oil Company (KGOC) is also progressing on developing a separate gas handling terminal in Kuwait, though this project is still in an early phase. In addition to these separate facilities, the joint venture is advancing an onshore package that includes a monoethylene glycol (MEG) recovery plant, water treatment facilities, and other related infrastructure.

Additional Development Packages and Value

Multiple offshore packages are also available for the Dorra development from the joint venture. Collectively, the onshore and offshore packages are estimated to be worth upwards of $10 billion. The joint venture had previously selected Technip Energies as the preferred contractor to carry out pre-front-end engineering and design, and FEED studies.

Regional Dispute Over the Field

Iran disputes the Saudi-Kuwait claim to the Dorra field, which it refers to as Arash. A top Iranian official from the Islamic Revolutionary Guard (IRGC) stated in 2024 that Iran would not retreat from its national interests in the Arash field. He cited evidence that Kuwait had created a company to utilize the field and initiated a bid process, emphasizing the importance of Iran's presence in the field. Despite this resistance from Iran, Saudi Arabia and Kuwait are continuing to progress with the development of the Dorra field.