RIYADH: Kuwait has rejected Iran’s “claims” over the Al-Durra gas field, stressing that it owns exclusive rights to its natural resources along with Saudi Arabia, state news agency KUNA has reported.
Kuwait has also called on Iran to start negotiations over the demarcation of its maritime borders after Tehran said it was ready to begin drilling in the Al-Durra field.
“We categorically and totally reject Iran’s planned activities around the premises of the Durra offshore gas field,” said Kuwaiti Oil Minister Saad Al-Barrak, KUNA reported.
Al-Barrak said he was surprised by the Iranian plan and added that the move from Tehran contradicts the basic principles of international relations.
According to KUNA, a close source to Kuwait’s Foreign Ministry said that the “maritime area where Al Durra offshore field lies is part of the State of Kuwait’s sea territories, and the natural resources therein are shared between Kuwait and Saudi Arabia.”
The source added: “Only the State of Kuwait and Saudi Arabia have exclusive rights to the natural resources of the Al-Durra field.”
Earlier in March, Kuwait and Iran had held joint negotiations in Tehran regarding the demarcation of their maritime borders, where both sides stressed the need to settle the matter according to international laws.
In 2022, Kuwait and Saudi Arabia signed an agreement to develop the field despite strong objections from Iran.
Controversies surrounding the field operations have emerged as Mohsen Khojsteh Mehr, managing director of the National Iranian Oil Co., announced last week that Iran had allocated considerable resources to explore the offshore field.
“Considerable resources have been allocated to the board of directors of the National Iranian Oil Co. for the implementation of the development plan for this field,” said Mehr, Iranian state media reported.
Iran and Kuwait have been holding several unsuccessful talks for years to resolve the dispute surrounding the maritime border, which is rich in natural gas.
The field lies in the shared neutral zone between Kuwait and Saudi Arabia, and it is expected to produce 1 billion cubic feet of gas daily and 84,000 barrels per day of condensate.
Kuwait rejects Iranian drilling plans on Al-Durra gas field: KUNA
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Kuwait rejects Iranian drilling plans on Al-Durra gas field: KUNA
Kuwait forecasts 54.7% rise in fiscal deficit as oil revenues weaken
JEDDAH: Kuwait expects its fiscal deficit to widen sharply in the 2026–2027 budget year as lower oil income weighs on public finances, with the shortfall projected to rise 54.7 percent to 9.8 billion dinars ($31.9 billion).
Announcing the draft budget, Finance Minister Yaqoub Al-Refaei estimated total expected revenues at 16.3 billion dinars, marking a 10.5 percent decline compared with the previous fiscal year.
Kuwait is pushing Vision 2035 reforms to diversify its economy and boost non-oil growth but remains exposed to oil price volatility despite moderate inflation and strong non-oil expansion.
“The minister disclosed that oil revenues were budgeted at 12.8 billion dinars, a 16.3 percent contraction compared to the current budget ending March 31, 2026,” the Kuwait News Agency, known as KUNA, reported.
Highlighting a positive trend for fiscal diversification, non-oil revenues are projected to rise 19.6 percent to 3.5 billion dinars.
He noted that total expenditure is expected to reach 26.1 billion dinars, with salaries and subsidies accounting for 76 percent, capital spending 11.8 percent, and other expenditures 12.2 percent. The FY 2026–2027 budget is based on a conservative oil price estimate of $57 per barrel.
The minister, however, stressed that Kuwait’s fiscal break-even price — the price needed to balance the budget — is significantly higher, at $90.5 per barrel.
The draft budget, covering April 1, 2026, to March 31, 2027, includes capital spending of 3.1 billion dinars, with significant allocations for infrastructure and strategic projects, according to a release by the Ministry of Finance.
Of this, 318 million dinars will fund the Ministry of Public Works for developments such as Mubarak Al-Kabeer Port, the Umm Al-Hayman plant expansion, the North Kabd station, and the expansion of Kuwait International Airport’s Terminal 2.
Additional allocations support the health ministry’s cancer control center, as well as the Defense and Interior ministries for military equipment.
Higher spending is also driven by a 741.2 million-dinar increase in the public treasury’s contribution to social insurance to cover pension fund deficits.
Conversely, support for fuel used in power generation and refined products declined by 449.2 million dinars due to falling global oil prices.
The ministry highlighted that the budget would create 14,518 new positions, reflecting efforts to boost employment while continuing to diversify revenue sources.
