Iran Ready to Develop Arash Gas Field Without Kuwait, Fars Says

Iran said it would launch full-scale development of the offshore Arash gas field in the Persian Gulf if Kuwait does not respond to its offer of joint development.

"Our emphasis presently is on joint partnership strategy rather than competition, and we are hopeful to reach a conclusion with Kuwait over the development of the shared Arash field," Head of the Iranian Offshore Oil Company Mahmoud Zirakchianzadeh said.

He said Iran’s policy on shared oil and gas fields is partnership rather than confrontation.

But "if Iran’s positive diplomacy is turned down, we will be carrying on our efforts at Arash field unilaterally just as we did in Hengam oil field," Zirakchianzadeh said.

Iran is developing its part of the offshore Hengam oil field, shared with Oman, on its own.

Zirakchianzadeh said Iran has already launched its "operational activities" on the development and production at Arash and was not dragging its feet in anticipation of Kuwait’s response.

Arash gas field is located on Iran-Kuwait’s water border and it is called Dorra in the Kuwait part of the field.

The field’s gas reserve is estimated at one trillion cubic feet along with some 310 million barrels of oil.

In November, Iran’s Oil Minister Rostam Qassemi stressed that development of joint oil and gas fields shared with the neighboring countries sets a priority for his ministry and the Iranian government.

"As declared earlier, development and production at joint oil fields is a priority of the oil ministry and oil industry," Qassemi said on the sidelines of a ceremony held to mark the endorsement of a contract on crude production at Yaran joint oil field in November.

Qassemi has also earlier made similar remarks. "(Iran’s) oil industry is seriously pursuing activity in joint fields," Qassemi said in Iran’s Eastern province of South Khorassan in October.

"And all government bodies support and accompany the oil industry in fulfilling this important task (development of joint oil and gas fields)," the minister reiterated.