- Even as Iran and Saudi Arabia resolved to resume diplomatic relations early this year, the dispute over the Dorra gas field could be an impediment and harm bilateral relations.
- The Dorra gas field has enormous gas reserves, and whoever gets the right over it could get huge economic benefits.
- Iran’s energy resources would be improved, and it could potentially exert more influence in the region if it were to take control of the field.
- This dispute might also affect Kuwait’s ties to Iran because the Dorra gas field offers a substantial potential supply of natural gas reserves.
Iran’s relations with other West Asian countries including Saudi Arabia and Kuwait have improved during the past few months as a result of agreements signed with these countries. Despite all this Iran’s ties with Saudi Arabia and Kuwait are not hunky dory as they have certain issues to resolve yet. The rights over the Dorra oil field in Gulf’s maritime region with Iran continue to be a point of contention.[1]But recent agreements and mediation can turn the table in trilateral agreements.
Cause of Dispute
Dorra, also known as Arash in Iran, is situated in the northwest region of the Gulf, off the coast of Kuwait. Although Iran claims part of the field in the north, it is considered to be in the neutral zone between Saudi Arabia and Kuwait.[2]The disagreement erupted in the 1960s when Iran and Kuwait announced concessions to two distinct companies in the field. BP (the Anglo-Iranian Petroleum Company at the time) received recognition from Iran, whereas Royal Dutch Shell received one from Kuwait.[3] Iran and Kuwait have not been able to settle their border dispute through conversation.
However, Kuwait and Saudi Arabia continue to uphold their claims to the field. In 2001, due to Iran’s drilling activities in the area, Kuwait and Saudi Arabia reached an agreement over their maritime borders that culminated in collaborative development plans for the offshore zone. Amid these disputes, Saudi Arabia and Kuwait have urged Iran to negotiate the demarcation of the disputed region’s eastern boundary. But Iran retains its interest in the area and opposes the agreement that Kuwait and Saudi Arabia signed.[4]
According to multiple sources cited by the Kuwaiti newspapers Al-Qabas and Al-Rai in October 2009, the two countries agreed to begin oil extraction from jointly controlled fields in the neutral zone. However, in May 2016, Iranian military vessels violated Kuwait’s and Saudi Arabia’s maritime borders with provoking behaviour that Kuwait and Saudi Arabia both denounced as a threat from Iran. The animosity between these three countries persists notwithstanding the Dorra field deal between Kuwait and Saudi Arabia.[5]
Recent Escalation
Iran and Kuwait have been involved in protracted negotiations without progress on the disputed natural gas-rich maritime border region. Saudi Arabia is particularly interested in the conflict since it shares maritime oil and gas resources with Kuwait in the region. Last year, Kuwait and Saudi Arabia reached a deal to develop the field despite Iran’s objections, and Iran referred to it as “illegal.”[6]
The statement from Kuwait comes after National Iranian Oil Company director Mohsen Khojasteh Mehr on June 27, 2023, stated that Iran has decided to begin drilling operations in the Dorra gas field.[7] In response Kuwait approached Iran on July 3, 2023, to start the demarcation negotiations with the two Arab countries as one negotiating party.[8]Kuwaiti Oil Minister Saad al-Barrak said, “We categorically reject Iran’s planned activities around the premises of the Durra offshore gas field”.[9]Following Saudi Arabia and Kuwait, the kingdom has once again called on Iran to reengage negotiations on the demarcation of their maritime borders in the Arabian Gulf. The Saudi plea for resumption of maritime border negotiations comes a day after Kuwait made a similar request of Iran.[10] To refute Iran’s claims about a disputed gas field, Saudi Arabia and Kuwait have stated their “full rights” in the matter.[11]
Ramification
Iran and Saudi Arabia resolved to resume diplomatic relations in early March of this year after seven years. If this dispute over the field of gas continues without any substantive conversation, it could constitute an impediment in this field and harm bilateral relations. According to figures, the Dorra gas field has enormous gas reserves, and whoever gets right, it could get big economic benefits. Iran’s energy resources would be improved, and it could potentially exert more influence in the region if it were to take control of the field. Saudi Arabia, on the other hand, might view this as a challenge to its economic and energy interests, which could result in economic retaliation or increased economic competition between the two countries.
This dispute might also affect Kuwait’s ties to Iran because the Dorra gas field offers a substantial potential supply of natural gas reserves, a stake in it is crucial for the area’s economic development and energy security. If the dispute worsens, it can have an impact on Kuwaiti and Iranian investment, commerce, and bilateral economic cooperation. Political commitments in both countries may change depending on how the dispute over the Dorra gas field turns out. This may influence the geopolitical dynamics in the region.
Way Ahead
The Dorra gas field dispute must be resolved, as it will have a substantial impact on the growth of their energy industries and prospective field revenue. It’s essential to underscore that these implications are hypothetical and depend on a variety of variables, including how to resolve the disputes, each country’s actions and reactions, and the overall geopolitical circumstances at the time. The dispute is still unsettled since it’s challenging to come to a mutually accepted solution. Therefore, for the time being, we can only monitor this situation closely; perhaps this time, these countries will find a solution.
(Anjali Singh is a Postgraduate student in political science and international relations. She currently works as a research intern at the Indian Council of world affairs, New Delhi. Views expressed are the author’s own)
References:
[1] Saudi Arabia, Kuwait, and Iran engage in a dispute over the gas Field in resource-rich Gulf. (2023, July 5). Energy People. https://energypeople.com/news/story/saudi-arabia–kuwait–and-iran-engage-in-dispute-over-gas-field-in-resource-rich-gulf, Accessed on 2023, July 31
[2] Saudi Arabia, Kuwait’s gas dispute with Iran tests recent detente – Al-Monitor: Independent, trusted coverage of the Middle East. (2023, July 9). Www.al-Monitor.com. https://www.al-monitor.com/originals/2023/07/saudi-arabia-kuwaits-gas-dispute-iran-tests-recent-detente#:~:text=Durra%20%E2%80%94%20known%20as%20Arash%20in, Accessed on 2023, July 20
[3] Al Khafji joint operations – Dorra gas Field development: Onshore – Eastern province. (2023, February 15). Market Research Reports & Consulting | GlobalData UK Ltd. https://www.globaldata.com/store/report/al-khafji-joint-operations-dorra-gas-field-development-onshore-eastern-province-profile-snapshot/, Accessed on 2023, August 3
[4] Saudi Arabia, Kuwait, and Iran engage in a dispute over gas Field in resource-rich Gulf, (2023, July 5), Oil and Gas People, https://www.oilandgaspeople.com/news/story/saudi-arabia–kuwait–and-iran-engage-in-dispute-over-gas-field-in-resource-rich-gulf, Accessed on 2023, July 28
[5] How the Arash-Dorra Gas Field Could Improve Saudi-Iran Ties, Gulf International Forum, https://gulfif.org/how-the-arash-dorra-gas-field-could-improve-saudi-iran-ties/, Accessed on 2023, July 26
[6] Oil and gas middle east, (2023, July 5), oilandgasmiddleeast.com, https://www.oilandgasmiddleeast.com/news/saudi-arabia-declares-full-rights-on-controversial-gas-field-claimed-by-iran, Accessed on 2023, July 20
[7] Will Iran vs. Kuwait-Saudi Arabia gas clash turn into a trilateral deal? (2023, July 12). Amwaj. media. https://amwaj.media/media-monitor/will-iran-vs-kuwait-saudi-arabia-gas-clash-turn-into-trilateral-deal, Accessed on 2023, August 1
[8] Saudi Arabia calls on Iran to start talks over ‘Divided area’ demarcation, TRT World – Breaking News, Live Coverage, https://www.trtworld.com/middle-east/saudi-arabia-calls-on-iran-to-start-talks-over-divided-area-demarcation-13903597, Accessed on 2023, July
[9] Kuwait, Iran FMs affirm commitment to sustaining dialogue, supporting stability, (2023, July 6), Asharq Al-Awsat | Explore World News Today, https://english.aawsat.com/gulf/4418251-kuwait-iran-fms-affirm-commitment-sustaining-dialogue-supporting-stability, Accessed on 2023, July 24
[10] Naar, I, (2023, July 6), Saudi Arabia urges Iran to rejoin maritime demarcation talks, The National, https://www.thenationalnews.com/gulf-news/saudi-arabia/2023/07/06/saudi-arabia-urges-iran-to-rejoin-maritime-demarcation-talks/, Accessed on 2023, July 22
[11] Oil and gas middle east, (2023, July 5), oilandgasmiddleeast.com, https://www.oilandgasmiddleeast.com/news/saudi-arabia-declares-full-rights-on-controversial-gas-field-claimed-by-iran, Accessed on 2023, July 20
Saisha Kamla Dudha 
Sourabh Shetty 
Aayush Pal