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Significant delays are now expected for state-owned Kuwait Gulf Oil Company's (KGOC's) planned tender for the development of an onshore gas plant next to the Al-Zour refinery, according to industry sources.

The project budget is estimated to be $3.3bn and the last meeting with contractors to discuss the project took place in Kuwait on 10 February.

In February, contractors were told to expect the invitation to bid to be issued in late March, but this schedule is now expected to be extended significantly due to uncertainties created by the US and Israel attacking Iran on 28 February

Under current plans, the plant will have the capacity to process up to 632 million cubic feet a day (cf/d) of gas and 88.9 million barrels a day of condensates from the Dorra offshore field, located in Gulf waters in the Saudi-Kuwait Neutral Zone.

Ownership of the field is disputed by Iran, which refers to the field as Arash.

Iran claims the field partially extends into Iranian territory and asserts that Tehran should be a stakeholder in its development.

One source said: “Developing this gas field in the waters so close to Iran will be impossible in the current security environment.

“Everyone is expecting extended delays to progress on this project and all related projects, such as the planned onshore processing facility in Kuwait.

“The offshore elements of the project would be especially vulnerable to attacks from Iran and there are likely to be security concerns over the development of this field for some time to come.”

In July last year, MEED reported that KGOC had initiated the project by launching an early engagement process with contractors for the main engineering, procurement and construction tender.

France-based Technip Energies completed the contract for the front-end engineering and design.