Kuwait Petroleum Company denies leaving Pakistan

ISLAMABAD:  Kuwait Foreign Petroleum Exploration Company (KUFPEC) has denied reports of exiting Pakistan’s oil and gas sector, vowing to expand its operations in the country.

In a statement to Kuwait News Agency (KUNA), Kuwait Foreign Petroleum Exploration Company said on Tuesday that it will continue to be a strategic partner to the Pakistan in oil and gas sector.

KUFPEC said that its subsidiaries, KUFPEC Pakistan Holdings BV, KUFPEC Pakistan BV, and Kirthar Pakistan BV, have successfully divested their “non-operated assets” in Pakistan.

“The divestment was made in favour of Petroleum Exploration (Pvt) Limited, a leading private-sector exploration and production company in Pakistan with a significant local and international presence”, the statement said.

KUFPEC emphasized that despite this divestment, it continues to be a strategic partner to the Pakistani government in oil and gas exploration and production, reaffirming its ongoing role as the operator of the Makhad Block in Pakistan.

KUFPEC further noted that it is working to diversify and expand its operations in Pakistan, adding that in collaboration with the Directorate General Petroleum Concessions and major exploration and production companies, it is preparing for the upcoming offshore bidding round.

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“This strategic involvement demonstrates KUFPEC’s commitment to strengthening its presence and continuing to grow within Pakistan’s energy sector”, it added.

KUFPEC’s Executive Vice President for Operations Tareq Ebrahim, said that this divestment is in line with the company’s strategy to optimize its portfolio by streamlining assets and focusing on high-potential opportunities through strategic acquisitions, particularly in exploration and development.

Talking to the media in Islamabad, Federal Minister for Petroleum Dr. Musadik Malik today also refuted the reports that Kuwait Foreign Petroleum Exploration Company (KUFPEC) is withdrawing from Pakistan, stating that they have only offloaded their 17 percent non-operated assets in the country.

Earlier, Pakistani some media outlets claimed that Kuwait Foreign Petroleum Exploration Company (KUFPEC) is leaving Pakistan’s oil and gas sector by selling its major assets to Pakistan Exploration (Private) Limited (PEL) for about $60 million, due to the massive circular debt in the gas sector.

It is pertinent to mention KUFPEC is a subsidiary of Kuwait Petroleum Corporation, engaged in the exploration development, and production of crude oil and natural gas outside Kuwait.