RIYADH: Aramco Gulf Operations Co. has signed a memorandum of understanding with the Kuwait Gulf Oil Co. to develop the joint Durra gas field, which is expected to produce roughly one billion cubic feet of natural gas per day, along with 84,000 barrels of liquefied gas.
In a press statement, acting CEO of KGOC Khaled Al-Otaibi said that the MoU aims to re-assess and complete engineering studies of the field project as well as form a technical team to carry out the scheme.
The signing ceremony was attended by Kuwait’s Deputy Prime Minister and Minister of Oil Badr Al-Mulla and Saudi Minister of Energy Prince Abdulaziz bin Salman.
The signing of the MoU is considered an implementation of an agreement on developing the Al-Durra submerged field that was signed on Dec. 24, 2019, between the governments of Saudi Arabia and Kuwait, said Al-Otaibi.
He further added that the MoU is a culmination of talks between the officials of Saudi Arabia and Kuwait on reaching a deal on a direct mechanism, and carrying out and developing the Durra field located in the maritime borders of the two countries.
The Durra gas field was discovered in 1967. The total proven gas reserves in the field are around 20 billion cubic feet.
Aramco Gulf Operations Co. which commenced its operations on Feb. 28, 2000, is incorporated as a 100 percent subsidiary of the Kingdom’s national oil company Saudi Aramco.
The firm, however, operates as an independent entity with its own board of directors, responsible to Saudi Aramco as a shareholder, according to its website.
On Dec. 10, a report released by the General Authority for Statistics revealed that an increase in oil activities is driving the economic growth of the Kingdom.
According to the report, Saudi Arabia’s real gross domestic product grew by 8.8 percent in the third quarter of 2022 compared to the same period last year, while the GDP grew 2.1 percent compared to the second quarter of this year.
Meanwhile, on Dec. 9, Saudi Aramco signed an MoU to supply crude oil to the Chinese province of Shandong.
The MoU was signed with Shandong Energy Group, which includes a potential crude oil supply agreement and chemicals products offtake deal, supporting Aramco’s role in building a thriving downstream sector in Shandong Province.
