KUWAIT: Saudi Arabia's energy minister has signed a document with his Kuwaiti counterpart to develop the Durra gas field, Kuwait Petroleum Corporation said in a statement yesterday. The Durra field, which is shared between the two states, is expected to produce one billion standard cubic feet per day of gas and 84,000 barrels per day of condensates, according to the statement.

The plan, signed by Mohammad Al-Fares and his Saudi counterpart Prince Abdulaziz bin Salman, entails the use of cutting-edge and environment-friendly methods to ramp up gas output from the vital project, a joint endeavor between Saudi-based Aramco Gulf Operations Company and Kuwait Gulf Oil Company.

As per the deal, gas output will be divided evenly between the neighbors, at a time where soaring consumption has led to growing demand for energy in the two countries. Durra is located in the Kuwait-Saudi Neutral Zone, where production is divided equally between the two countries.

Oil prices soared yesterday as a weekend attack on Saudi facilities and EU discussions on banning Russian crude raised concerns over global supplies. Top producer Saudi Arabia warned that Yemeni rebel attacks on the kingdom's oil facilities pose a "direct threat" to global supplies. Saudi Arabia "will not incur any responsibility" for shortages in oil supplies in light of the Iran-backed Houthi attacks, the foreign ministry said in a statement. These cross-border assaults are a "direct threat to the security of oil supplies in these extremely sensitive circumstances witnessed by the global energy markets", it added.

The statement comes a day after the kingdom acknowledged a temporary drop in production after the Houthis attacked a refinery with an armed drone. It urged the international community to "stand firm" against the Houthi insurgents. Oil prices have repeatedly spiked above $100 per barrel lately, driven by supply concerns centered on Russia's invasion of Ukraine. They rose higher again yesterday. Brent crude was up more than seven percent at more than $115 per barrel at one stage.

Analysts said the main mover of the market was news of the EU considering a ban on Russian oil imports, although the Houthi attacks on Aramco were also cited. The drone assault on the YASREF refinery in Yanbu Industrial City on the Red Sea "led to a temporary reduction in the refinery's production", the Saudi energy ministry said Sunday. It added that the drop would "be compensated for from the inventory", but did not provide numbers.

Oil-rich Gulf countries, including Saudi Arabia, have been under pressure to open the supply taps, but have so far held firm, stressing their commitment to output cuts agreed by the OPEC+ alliance of oil producers led by Riyadh and Moscow. - Agencies