Saudi Arabia and Kuwait urge Iran to engage in talks to de-escalate the Al-Durra gas field row

A view of the Al-Durra offshore gas field, a common submerged area between Saudi Arabia and Kuwait in the Arabian Gulf. (Supplied)
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Updated 10 July 2023
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Saudi Arabia and Kuwait urge Iran to engage in talks to de-escalate the Al-Durra gas field row

  • Saudi Foreign Ministry: Natural resources in the ‘Divided Area’ are solely owned by Saudi Arabia and Kuwait
  • Long-running tensions over the gas field have once again re-emerged after Iran revealed plans to resume activities in the area

RIYADH: Saudi Arabia and Kuwait have asserted exclusive ownership of the Al-Durra gas field in the maritime “Divided Area” after tensions with Iran rose once again in the long-running dispute over the lucrative site.

The Saudi minister of foreign affairs reaffirmed the joint ownership, calling on Iran to engage in negotiations to demarcate the eastern border of the area. 

The Kuwaiti oil minister also rejected Iran’s claims over the field and urged Tehran to initiate discussions about the area.

In a statement released by the Saudi Press Agency on Tuesday, a Foreign Ministry source emphasized the natural resources in the “Divided Area” are solely owned by Saudi Arabia and Kuwait. 

“We renew our previous calls for Iran to start negotiations to demarcate the eastern border of the submerged divided area between the Kingdom and Kuwait, as one negotiating party opposite the Iranian side,” the ministry stated.

Following Saudi Arabia’s declaration, Kuwait also asserted its exclusive rights over the Al-Durra gas field. According to state news agency KUNA, Kuwaiti Oil Minister Saad Al-Barrak expressed strong opposition to Iran’s planned activities in the area. 

“We categorically and totally reject Iran’s planned activities around the premises of the Al-Durra offshore gas field,” Al-Barrak said, 

In an interview with Asharq during the 8th Organization of the Petroleum Exporting Countries’s International Seminar, he added: “Iran must first enter into the demarcation of international borders, and after that, whoever has a right will get it according to the rules of international law.”

A source close to Kuwait’s Foreign Ministry revealed to KUNA 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,” dismissing any claims by Iran.

The source added: “Only the state of Kuwait and Saudi Arabia have exclusive rights to the natural resources of the Al-Durra field.”

This assertion solidifies Kuwait’s position and underscores the shared ownership between the two neighboring countries.




Kuwaiti Oil Minister Saad Al-Barrak says his country categorically and totally reject Iran’s planned activities around the premises of the Al-Durra offshore gas field. (Supplied)

The dispute over the Al-Durra gas field has been ongoing for many years. In March, Kuwait and Iran held joint negotiations in Tehran, emphasizing the need to resolve the matter in accordance with international laws. 

Iran’s persistence in pursuing activities in the area however adds to the complexity of the dispute and poses challenges to achieving a resolution.

The Al-Durra gas field is a common submerged area between Saudi Arabia and Kuwait located in the Arabian Gulf. It is situated within the Al-Ahsa governorate, which is a part of the Eastern province of Saudi Arabia. 

The discovery of this oil field dates back to the 1960s, which coincided with the commencement of the demarcation process for the maritime borders between Saudi Arabia and Kuwait.


TIMELINE

• 1967 Al-Durra gas field discovered.

• 2013 Talks stall between Saudi Arabia, Kuwait and Iran.

• 2019 Saudi Arabia and Kuwait resume production from Neutral Zone fields.

• 2022 Saudi Arabia and Kuwait sign MoU to invest in Al-Durra gas field.

• 2023 Resources in Neutral Zone confirmed to be fully owned by Saudi Arabia and Kuwait.


The ownership of the field was evenly divided between the two countries, becoming effective in 1970. 

The gas field is one of the largest in the world with abundant natural gas reserves. 

It is expected to produce 1 billion cubic feet of gas daily and 84,000 barrels per day of condensate, and plays a significant role in Saudi Arabia and Kuwait’s gas production.

The Al-Durra oil field’s strategic importance and the potential wealth it holds have attracted the attention of neighboring countries, particularly Iran. 

The dispute over its ownership and exploitation rights arises from differing interpretations of maritime boundaries and conflicting claims by Tehran. 

In 2001, Iran began granting contracts for its exploration, which prompted Saudi Arabia and Kuwait to finalize the demarcation of their maritime borders, which included the Al-Durra oil field.

Despite objections from Iran, Saudi Arabia and Kuwait signed an agreement in 2022 to jointly develop and explore the field. 


IN NUMBERS

• 1 billion cubic feet estimated daily gas production.

• 84,000 barrels estimated daily production of liquefied natural gas.


The controversies surrounding the operations escalated following Iran’s announcement in June that it was prepared to commence drilling in the Al-Durra gas field.

Mohsen Khojsteh Mehr, the managing director of the National Iranian Oil Co., indicated that Iran is allocating sizeable resources for exploring the site. 

“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, according to Iranian state media.  

Despite attempts at negotiations and agreements between Kuwait, Saudi Arabia, and Iran, a definitive resolution to the dispute has remained elusive, leading to ongoing tensions and disagreements in the region.

The competing claims and Iran’s readiness to begin drilling in the Al-Durra field further exacerbate the tensions in the region. 

As the situation unfolds, it remains to be seen whether diplomatic negotiations or other means will be employed to reach a mutually agreeable resolution between the concerned parties.


Saudi POS transactions see 20% surge to hit $4bn: SAMA

Updated 05 December 2025
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Saudi POS transactions see 20% surge to hit $4bn: SAMA

RIYADH: Saudi Arabia’s total point-of-sale transactions surged by 20.4 percent in the week ending Nov. 29, to reach SR15.1 billion ($4 billion).

According to the latest data from the Saudi Central Bank, the number of POS transactions represented a 9.1 percent week-on-week increase to 240.25 million compared to 220.15 million the week before.

Most categories saw positive change across the period, with spending on laundry services registering the biggest uptick at 36 percent to SR65.1 million. Recreation followed, with a 35.3 percent increase to SR255.99 million. 

Expenditure on apparel and clothing saw an increase of 34.6 percent, followed by a 27.8 percent increase in spending on telecommunication. Jewelry outlays rose 5.6 percent to SR354.45 million.

Data revealed decreases across only three sectors, led by education, which saw the largest dip at 40.4 percent to reach SR62.26 million. 

Spending on airlines in Saudi Arabia fell by 25.2 percent, coinciding with major global flight disruptions. This followed an urgent Airbus recall of 6,000 A320-family aircraft after solar radiation was linked to potential flight-control data corruption. Saudi carriers moved swiftly to implement the mandatory fixes.

Flyadeal completed all updates and rebooked affected passengers, while flynas updated 20 aircraft with no schedule impact. Their rapid response contained the disruption, allowing operations to return to normal quickly.

Expenditure on food and beverages saw a 28.4 percent increase to SR2.31 billion, claiming the largest share of the POS. Spending on restaurants and cafes followed with an uptick of 22.3 percent to SR1.90 billion.

The Kingdom’s key urban centers mirrored the national decline. Riyadh, which accounted for the largest share of total POS spending, saw a 14.1 percent surge to SR5.08 billion, up from SR4.46 billion the previous week. The number of transactions in the capital reached 75.2 million, up 4.4 percent week-on-week.

In Jeddah, transaction values increased by 18.1 percent to SR2.03 billion, while Dammam reported a 14 percent surge to SR708.08 million.

POS data, tracked weekly by SAMA, provides an indicator of consumer spending trends and the ongoing growth of digital payments in Saudi Arabia. 

The data also highlights the expanding reach of POS infrastructure, extending beyond major retail hubs to smaller cities and service sectors, supporting broader digital inclusion initiatives. 

The growth of digital payment technologies aligns with the Kingdom’s Vision 2030 objectives, promoting electronic transactions and contributing to the nation’s broader digital economy.