TEHRAN (IRNA) -- The Oil and Gas Committee of Majlis Energy Commission has been assigned to follow up the dispute between Iran and Kuwait over Arash offshore gas field, lies in Iran's territorial water near what Kuwait calls it Dorra field, which is a neutral zone.

Speaking to IRNA here on Tuesday, member of Majlis Energy Commission Hossein Afarideh, insisted that Arash gas field is located in Iran's territorial water and owned by the country.

"Arash gas field, that is owned by Iran and located in Iran's territorial water, lies near al-Dorra field, which is in a neutral zone; and recently Kuwait and Saudi Arabia have reached agreement on its exploitation," said Afarideh after Tuesday meeting of his commission, which focused on Arash gas field on Tuesday.

Kuwaiti Energy Minister Sheikh Ahmad al-Fahd al-Sabah held talks with his Saudi counterpart, Ali al-Nuaimi, on proposals to develop the area.

Iran's oil minister Bijan Namdar Zanganeh had recently said that Tehran would not surrender its claim to the Arash gas field, amid discussions between Kuwait and Saudi Arabia on developing the disputed area.

"Iran will not give up its interest in the Arash gas field," Zangeneh said.

He added that Iran's Foreign Ministry had reached an understanding with Kuwait that along as the continental shelf between the two states had not been demarcated, nothing will proceed.

The dispute dates back to the 1960s, when Iran and Kuwait each awarded an offshore concession, the first to the former Anglo-Iranian Petroleum Co., which became part of BP, and the latter to Royal Dutch/Shell.

The two concessions overlapped in the northern part of the field.