$7 Billion Dorra Gas Field Development Advances: Kuwait and Saudi Arabia Push Forward with Major Consultancy Tender

Kuwait and Saudi Arabia are making significant progress on the long-awaited development of the offshore Dorra gas field (also known as Al-Durra), a key joint energy project in the Partitioned Neutral Zone (Divided Zone). Khafji Joint Operations (KJO) has extended the deadline for bids on a revised Project Management Consultancy (PMC) tender by three weeks, moving it from 17 August to 7 September 2026.

This tender seeks a consultant to oversee the engineering, procurement, and construction (EPC) works for the facilities needed to produce gas from the field. The overall development of the main facilities packages is valued at nearly $7 billion.

Four Major EPC Packages

KJO has divided the core EPC work into four main packages — three offshore and one onshore. Major contracts and awards have now advanced across these packages, with their combined value approaching $7 billion.

Key details on the packages include:

• Package 1 (offshore jackets and intra-field pipelines): Awarded to India’s Larsen & Toubro Energy Hydrocarbon (L&TEH), valued at approximately $140–150 million.

• Package 2A (wellhead topsides, flowlines, and umbilicals): Awarded to US-based McDermott International, valued at around $1.5 billion.

• Package 2B (central gathering platform complex, export pipelines, and cables): Awarded to a consortium of L&TEH and Italy’s Saipem, valued at about $3.7 billion and representing the largest offshore package.

• Package 3 (onshore gas processing facilities): Awarded, with reports indicating that Técnicas Reunidas of Spain secured a significant onshore contract valued at around $1.65 billion.

These developments mark a major milestone in advancing the field toward eventual gas production.

Revised PMC Tender Details

KJO originally issued the PMC tender on 29 September 2025. Engineering companies submitted bids by 19 January 2026. After discussions on contract terms and pricing, the company decided to re-tender with a revised scope of work.

Companies understood to have been invited or involved in the process include Fluor (US), KBR (US), Technip Energies (France), Wood (UK), Worley (Australia), Kent (Saudi Arabia/UAE), and Técnicas Reunidas (Spain). The PMC consultant will manage and oversee the EPC execution for the Dorra gas facilities.

Strategic Importance and Production Targets

Kuwait and Saudi Arabia aim to produce 1 billion cubic feet per day (bcfd) of gas from the Dorra field, along with approximately 84,000 barrels per day of condensate. The planned output is intended to be shared equally between the two countries.

The field was discovered in the 1960s and is located offshore in the Neutral Zone, which Kuwait and Saudi Arabia jointly administer. Dorra is considered an important gas resource within the zone.

Reserve estimates for the field vary considerably between sources, and different reports have used different figures and units. Because of these differences, an exact reserve figure should not be presented as a settled fact without a clearly identified authoritative source. Earlier reports have also used both trillion cubic feet and trillion cubic metres figures, so these numbers should be treated with caution.

KJO is jointly owned by Aramco Gulf Operations Company (a Saudi Aramco subsidiary) and Kuwait Gulf Oil Company (a subsidiary of Kuwait Petroleum Corporation).

Broader Context and Benefits

The project supports growing domestic demand for natural gas in both countries, particularly for power generation and water desalination in Kuwait, which relies partly on imported natural gas. Successful development is expected to contribute to energy security, reduce dependence on gas imports, and strengthen long-term bilateral cooperation in the Neutral Zone.

Additional related onshore processing facilities are advancing separately on both the Kuwaiti side and the Saudi side, forming part of the wider system intended to handle gas and condensate from the offshore field.

Some industry assessments have pointed to completion around 2029, but the exact production start date should be treated as subject to project progress and official updates.

The development proceeds under the framework of established joint operations arrangements between Kuwait and Saudi Arabia. Regional maritime and sovereignty issues involving neighboring parties have also been raised historically, but Kuwait and Saudi Arabia maintain their position regarding their joint administration of the Neutral Zone.

This progress on the Dorra project represents a significant step in regional energy cooperation, based on publicly reported commercial awards, tender developments from industry sources, and the shared energy priorities of Kuwait and Saudi Arabia.

All information in this article is based on publicly reported developments available as of August 2026. Where figures or timelines vary between sources, they have been presented cautiously rather than as certain facts.