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Kuwait to Drill in Durra Field before Iran Border Demarcation

Kuwaiti Oil Minister Saad Al Barrak. (KUNA)
Kuwaiti Oil Minister Saad Al Barrak. (KUNA)
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Kuwait to Drill in Durra Field before Iran Border Demarcation

Kuwaiti Oil Minister Saad Al Barrak. (KUNA)
Kuwaiti Oil Minister Saad Al Barrak. (KUNA)

Kuwait’s Oil Minister Saad Al Barrak told Sky News Arabia on Thursday his country will start drilling and begin production at the Durra gas field without waiting for border demarcation with Iran.

On July 3, Al Barrak, stated that Kuwait categorically rejects the Iranian claims and actions regarding the Durra oil field in the Gulf.

According to the Kuwaiti News Agency, Al Barrak emphasized that the Durra oil field boasts natural wealth that belongs to Kuwait and Saudi Arabia, and no other party has any rights to it until the maritime boundaries are demarcated.

“We were surprised by the Iranian claims and intentions regarding the Durra oil field, which contradict the most basic principles of international relations,” he stressed.

The Kuwaiti Foreign Ministry had declared that the maritime region containing the Durra oil field is situated within the territorial waters of Kuwait.

The natural resources in this area are jointly shared between Kuwait and Saudi Arabia, and they alone possess exclusive rights to the natural wealth in Durra.

On July 4, a reliable source at the Saudi Ministry of Foreign Affairs reaffirmed in a statement to the Saudi Press Agency that the ownership of natural resources in the demarcated submerged area, including the entire Durra oil field, is a shared solely between the Kingdom and Kuwait.

Both countries have full sovereign rights to exploit the resources in that area.

Saudi Arabia reiterated its previous calls to Iran to commence negotiations on demarcating the eastern boundary of the demarcated submerged area between the Kingdom and Kuwait as a single negotiating party, according to international law.

On March 21, Saudi Arabia and Kuwait signed an agreement for the development of the Durra field to produce one billion standard cubic feet of natural gas and 84,000 barrels of condensates daily, which will be shared between the two neighbors.

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Trump Exempts Mexico Goods from Tariffs for a Month, but Doesn’t Mention Canada

Construction workers are seen on the site of a new development in Long Beach, California, March 5, 2025. (AFP)
Construction workers are seen on the site of a new development in Long Beach, California, March 5, 2025. (AFP)
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Trump Exempts Mexico Goods from Tariffs for a Month, but Doesn’t Mention Canada

Construction workers are seen on the site of a new development in Long Beach, California, March 5, 2025. (AFP)
Construction workers are seen on the site of a new development in Long Beach, California, March 5, 2025. (AFP)

US President Donald Trump on Thursday said Mexico won't be required to pay tariffs on any goods that fall under the United States-Mexico-Canada Agreement on trade until April 2, but made no mention of a reprieve for Canada despite his Commerce secretary saying a comparable exemption was likely.

"After speaking with President Claudia Sheinbaum of Mexico, I have agreed that Mexico will not be required to pay Tariffs on anything that falls under the USMCA Agreement," Trump wrote on Truth Social. "This Agreement is until April 2nd."

Earlier on Thursday, US Commerce Secretary Howard Lutnick said the one-month reprieve on hefty tariffs on goods imported from Mexico and Canada that has been granted to automotive products is likely to be extended to all products that comply with the US-Mexico-Canada Agreement on trade.

Lutnick told CNBC he expected Trump to announce that extension on Thursday, a day after exempting automotive goods from the 25% tariffs he slapped on imports from Canada and Mexico earlier in the week.

Trump "is going to decide this today," Lutnick said, adding "it's likely that it will cover all USMCA-compliant goods and services."

"So if you think about it this way, if you lived under Donald Trump's US-Mexico-Canada agreement, you will get a reprieve from these tariffs now. If you chose to go outside of that, you did so at your own risk, and today is when that reckoning comes," he said.

Nonetheless, Trump's social media post made no mention of a reprieve for Canada, the other party to the USMCA deal that Trump negotiated during his first term as president.

Lutnick said his "off the cuff" estimate was that more than 50% of the goods imported from the two US neighbors - also its largest two trading partners - were compliant with the USMCA deal that Trump negotiated during his first term as president.

Canadian Prime Minister Justin Trudeau called Lutnick's comments "promising" in remarks to reporters in Canada.

"That aligns with some of the conversations that we have been having with administration officials, but I'm going to wait for an official agreement to talk about Canadian response and look at the details of it," Trudeau said. "But it is a promising sign. But I will highlight that it means that the tariffs remain in place, and therefore our response will remain in place."

Lutnick emphasized that the reprieve would only last until April 2, when he said the administration plans to move ahead with reciprocal tariffs under which the US will impose levies that match those imposed by trading partners.

In the meantime, he said, the current hiatus is about getting fentanyl deaths down, which is the initial justification Trump used for the tariffs on Mexico and Canada and levies on Chinese goods that have now risen to 20%.

"On April 2, we're going to move with the reciprocal tariffs, and hopefully Mexico and Canada will have done a good enough job on fentanyl that this part of the conversation will be off the table, and we'll move just to the reciprocal tariff conversation," Lutnick said. "But if they haven't, this will stay on."

Indeed, Trudeau is expecting the US and Canada to remain in a trade war.

"I can confirm that we will continue to be in a trade war that was launched by the United States for the foreseeable future," he told reporters in Ottawa.