Identifier
Created
Classification
Origin
06KUWAIT100
2006-01-16 11:29:00
UNCLASSIFIED
Embassy Kuwait
Cable title:  

KUWAIT TO BEGIN EXPLORATION IN "UNDISPUTED" AREA

Tags:  ENRG EPET ECON KU IR OIL SECTOR 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS KUWAIT 000100 

SIPDIS

SIPDIS

LONDON FOR TSOU
DEPARTMENT OF ENERGY FOR IE
EB/ESC/IEC FOR GALLOGLY, DOWDY

E.O. 12958: N/A
TAGS: ENRG EPET ECON KU IR OIL SECTOR
SUBJECT: KUWAIT TO BEGIN EXPLORATION IN "UNDISPUTED" AREA
OF OFFSHORE GAS FIELD SHARED WITH IRAN

REF: 05 KUWAIT 0943

UNCLAS KUWAIT 000100

SIPDIS

SIPDIS

LONDON FOR TSOU
DEPARTMENT OF ENERGY FOR IE
EB/ESC/IEC FOR GALLOGLY, DOWDY

E.O. 12958: N/A
TAGS: ENRG EPET ECON KU IR OIL SECTOR
SUBJECT: KUWAIT TO BEGIN EXPLORATION IN "UNDISPUTED" AREA
OF OFFSHORE GAS FIELD SHARED WITH IRAN

REF: 05 KUWAIT 0943


1. Local press and online news sources reported in the first
week of January that Kuwait plans to start exploring for
natural gas in what it calls the "undisputed" parts of the
offshore Durra gas field (reftel). Ministry of Energy
Undersecretary Issa Al-Own told a local newspaper on January
2 that talks with Iran were continuing regarding the
continental shelf boundary, but that Kuwait would "go ahead
with exploration in the undisputed part."


2. In 1960, both Kuwait and Iran awarded concessions for
exploration in the Durra field, to Anglo-Iranian Petroleum
(now part of BP),and Royal Dutch/Shell. However, no
significant exploration and or development has been yet
carried out on the field. Recoverable gas reserves in Durra
are estimated at 200 billion cubic meters. Kuwait signed an
agreement with Saudi Arabia in 2000 to divide any oil and gas
profits from the offshore Durra field, but Iran made a claim
to part of the field and objected to any exploration until
the maritime border is demarcated. Foreign Minister Shaykh
Dr Mohammed Sabah Al-Salem Al-Sabah has made numerous trips
to Iran over the past two years to attempt to reach a
settlement of the offshore border issue but it has yet to be
resolved.


3. According to the press reports, Al-Own also said that
Kuwait would soon invite bids for seismic surveys of the
Kuwait portion of the Durra field, along with other offshore
fields. He said that he did not expect Iran to object. Iran
responded by saying that the exploration "must be in
undisputed waters", according to Iranian Foreign Ministry
spokesman Hamid Reza Asefi, quoted in January 3 news reports.


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Visit Embassy Kuwait's Classified Website:
http://www.state.sgov.gov/p/nea/kuwait/
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LeBaron