Dorra Gas Faces Delay as Saudis Propose Switch, Rifaai Says

Kuwait is facing a delay in developing the offshore Dorra natural-gas field as Saudi Arabia, which co-owns the deposit, wants to change the delivery point of the fuel, according to an official.

Engineering and design work were undertaken on the project based on shipment of gas to the partners offshore at the production site and Saudi Arabia now wants the fuel to be delivered elsewhere, Hashim al-Rifaai, chairman and managing director of Kuwait Gulf Oil Co., told reporters in Dubai today.

“We are still drilling, things are still going as planned,” al-Rifaai said. If the issue isn’t resolved by the end of the year, the project would be completed in 2015, a year later than planned, he said.

The Kuwaitis don’t know why the Saudis want to change the plans, al-Rifaai said. There is no financial benefit to changing the offloading location, he said. The project would initially produce 600 million cubic feet a day and eventually reach 1 billion, which would be shared equally between the two countries, he said.

To contact the reporter on this story: Ayesha Daya in Dubai at adaya1@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net

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