ISLAMABAD: Kuwait Foreign Petroleum Exploration Company (KUFPEC) has decided to exit Pakistan and initiated the process of selling its key assets, to Pakistan Exploration (Private) Limited (PEL), The News International reported.
The local publication, citing official sources from the Ministry of Energy, said that KUFPEC is selling its assets valued at nearly $60 million, to Pakistan Exploration (Private) Limited (PEL).
KUFPEC, a subsidiary of Kuwait Petroleum Corporation, will sell its assets and concessions in various blocks across Pakistan to reinvest in other countries.
in various blocks across Pakistan to Pakistan Exploration (Private) Limited (PEL) to reinvest in other countries.
The officials said that the foreign Exploration and Production (E&P) companies are increasingly disheartened, primarily due to the “massive circular debt in the gas sector, now at Rs2,700 billion”.
“Of this debt, Rs1,500 billion, including $600 million owed to local and foreign Exploration and Production (E&P) companies, remains unpaid due to defaults by the gas companies. The 12-month delay in approving amendments to the 2012 E&P policy also contributed to KUFPEC’s decision,” the report, citing the officials, stated.
The company, established in April 1981, focuses on the discovery, development, and extraction of crude oil and natural gas outside Kuwait. It operates in 10 countries across five continents, including Australia, Asia, Africa, North America, and Europe.
Pakistan Exploration (Private) Limited (PEL) also confirmed to the local publication about the acquisition, stating that the company has acquired KUFPEC Pakistan’s assets after winning the bid.
According to a press release on PEL’s website, the acquisition includes assets in Pakistan’s Dadu, Kirthar, Tajjal, and Qadirpur concessions, along with the Bhit and Qadirpur leases.
