OPEC Gulf neighbours Kuwait and Saudi Arabia have raised estimates for their investment in the joint Durra gas field in the Neutral Zone they share by nearly $70 million, a Kuwaiti newspaper reported on Thursday.
The two major oil producers had estimated they would pump nearly $2.65 billion into the field as part of an agreement to jointly develop the field.
“The two countries have revised capital spending estimates to $2.72 billion as part of option A1…this agreement will guarantee sound revenue shares and the safety of gas pipelines at the field,” the Arabic language daily Alqabas said.
The paper quoted sources in the Kuwait Petroleum Corporation as saying the Boards of KPC and Saudi Aramco have rejected “proposals by the consulting company” and decided on the “A1” option as the best formula for field sharing.
The agreement on Al-Durra field, with estimated gas reserves of nearly 20 trillion cubic feet, includes the production of one billion cubic feet of gas and 84,000 barrels per day of condensates.
(Writing by Nadim Kawach; Editing by Anoop Menon)