Jordan has kicked off efforts to expand domestic gas production, awarding a $174mn turnkey contract to the Kuwait Drilling Co. (KDC) to develop the strategic Risha gas field. The four-year agreement will see KDC drill 80 new wells, a move central to Amman’s long-term strategy to reduce its heavy reliance on energy imports.

The deal, formalised by Jordan’s state-owned National Petroleum Co. (NPC) Director-General Mohammad Khasawneh and KDC Chairman Abdulaziz Al Rashed, represents one of the most substantial investments in the kingdom’s upstream sector in years.

The signing was attended by senior officials, including Minister of Energy and Mineral Resources Saleh Kharabsheh, who framed the contract as a cornerstone of the country’s economic roadmap. Kharabsheh described the agreement as a “significant milestone” in Jordan’s economic development, directly supporting the ambitious goals of the Economic Modernisation Vision (EMV).

This strategic wager is underpinned by a dramatic reassessment of the Risha field’s potential. Last November, the Ministry of Energy and Mineral Resources (MEMR) announced a massive prospective resource uplift following technical studies. The field, Jordan’s only producing gas asset, is now suggested to hold a base case of nearly 12 trillion cubic feet (340bn cubic metres) of gas, 4.67 tcf (132bcm) of which is deemed to be recoverable. This figure, which dwarfs previous estimates, has fundamentally altered the kingdom’s energy calculus and injected new urgency into developing the asset.

KDC’s Al Rashed thanked the Jordanian government for its trust in KDC, framing the contract as a “reflection of the strong ties between the two countries.” He expressed KDC’s appetite for further involvement, expressing hope for “further collaboration on future projects to enhance production and Jordan’s energy security.”

KDC won the tender after a competitive process, securing the highest technical and financial ranking. This new phase is not a cold start. NPC Chairman Laith Qassem highlighted that the project leverages extensive ongoing work, including reservoir studies. Qassem noted that KDC had already established a track record at Risha, having recently completed 10 wells under a similar system and achieving “strong” results.

The $174mn KDC contract is the first major step in a far grander, decade-long development plan estimated to cost over JOD2bn ($2.8bn). This ambitious strategy aims to triple production from the current 45mmcf per day to 150mmcf. A critical, and costly, component will be the construction of a new pipeline connecting the remote Risha field to the Arab Gas Pipeline, integrating it into the national grid.

Despite the new optimism, Risha, discovered in 1986, has a checkered history. Located in the northeastern desert near the Iraqi border, the field has frustrated developers before. bp relinquished its control in 2014 after unproductive exploration. A subsequent four-year production-sharing agreement (PSA) with another foreign firm in 2016 also yielded little progress. NPC has since consolidated control, securing a 50-year contract for the field.

The financing for the new drilling campaign reflects this state-led approach, relying on a blend of NPC’s gas sales revenues and JOD87mn ($123mn) in direct government support.

In parallel with drilling, NPC is upgrading its production infrastructure and actively cultivating a domestic market. The company has inked several sales agreements with private firms to compress and liquefy Risha’s gas, enabling transport by tanker to industrial consumers across the kingdom.

The government has made its objective clear. The "ultimate" goal, according to NPC statements, is to achieve self-sufficiency in natural gas and curtail costly imports. Beyond energy security, Amman hopes a reliable domestic gas supply will catalyse the development of downstream petrochemical, processing, and mining industries, creating significant added value for the national economy. This $174mn deal is the first major salvo in that long-term strategic campaign.