Al-Khafji Joint Operations (KJO) is an example of how you can take the best of two state-owned oil companies to make another well-run and much respected operation.
KJO shares traits with both its shareholders, Kuwait Petroleum Corporation and Saudi Aramco, yet also manages to retain its own identity.
The proposed tender for the Dorra offshore non-associated gas field is currently being formulated using a similar method employed by Aramco for offshore jobs in Saudi Arabia.
Australia’s WorleyParsons is working on some form of front-end engineering and design (feed) for Dorra, but reports say it is being done in the Aramco style and being made into a bid document. Using this method saves time and means KJO is serious about Dorra.
The big question now is how Iran will react. Iran has a long-held claim over the Dorra field, although this claim has always been disputed by Kuwait and Saudi Arabia.
It is highly likely that talks have taken place between the three countries over the development of the field, but no information has been made public regarding a deal.
Kuwait needs the Dorra gas to fuel power stations and industrial plants, so the sooner it can get the gas onstream, the better.
From an offshore contractor’s perspective, the usual big players will be lining up for the deal, which is the largest in the region since the Wasit offshore gas package was won by Italy’s Saipem in early 2011.
With an estimated budget in excess of $1.5bn, the Dorra contract is one they will all want to win.