Saudi Arabia says it enjoys “full rights” along with Kuwait to a disputed gas field in the resource-rich Gulf, pushing back against claims by Iran. Iran seeks to expand production from the Arash (Durra) field, which sits on a border zone between the two countries maritime borders in the Persian Gulf. Iran could boost its natural gas exports by more than 35 billion cubic meters per year if the plan goes through. That would put it close to world leader Russia, which currently exports about 180 Bcm/yr.
But the development of Arash is a thorny issue for Riyadh, as the field lies in its territory, and Saudi Arabia has long complained about Iran infringing on its rights. Arash is part of a more extensive field — South Pars — which contains around 10 trillion cubic feet of gas. Iran argues that the Arash development by Kuwait and Saudi Arabia violates international law, as the two have done without considering its share of the field’s resources.
In a statement, Saudi Foreign Minister Sheikh Mohammed bin Salman Al Saud said that the field falls under “joint ownership between the Kingdom of Saudi Arabia and the State of Kuwait, and they alone have full rights.” He added that discussions have yet to be underway about sharing the benefits of Arash’s development with Iran.
The announcement comes after a surprise rapprochement between the two Middle East heavyweights, raising hopes for reduced regional tensions. Saudi-Iran tensions have flared over the last few years, with the United States calling for the arrest of Crown Prince Mohammed bin Salman for his role in killing journalist Jamal Khashoggi. The rapprochement has seen the countries restore ties and hold talks.
But despite the thaw in relations, the US has not yet lifted sanctions on Iran. And if Washington doesn’t lift its pressure on Tehran, Riyadh might be tempted to take steps in return, such as blocking arms sales and removing Patriot air-defense systems from the peninsula.
Katulis adds that if the new regional opening between Saudi and Iran will be meaningful, it must tackle those concerns over Iran’s nuclear program. Otherwise, “it’s just optics if the two don’t work together to defuse this difficult issue.” And that will make it harder for Biden’s Plan A — rejoining the Iran nuclear deal — to succeed. “This is a dangerous moment,” he concludes. “We can’t have a regional opening that doesn’t address these serious issues.”
