Islamabad, Dec 24: Kuwait Foreign Petroleum Exploration Company (KUFPEC) is exiting Pakistan’s oil and gas sector by selling its assets, valued at $60 million, to Pakistan Exploration (Private) Limited (PEL).
This move comes amid a growing trend of foreign energy companies pulling out due to increasing challenges in the sector, according to a national daily.
The decision is largely driven by the ongoing crisis in the gas sector’s circular debt, which has reached Rs. 2,700 billion, with Rs. 1,500 billion owed to both local and foreign exploration and production firms. Additionally, a 12-month delay in updating the 2012 E&P policy further discouraged KUFPEC from continuing its operations in Pakistan.
KUFPEC, a subsidiary of Kuwait Petroleum Corporation, has been involved in energy exploration in Pakistan since 1981. The company had previously sought to strengthen its position by partnering with local firms like OGDCL and MPCL, but its sudden exit just one year later has raised concerns among policymakers.
In a statement, PEL emphasized the strategic value of the acquisition in enhancing its exploration capabilities and meeting Pakistan’s growing energy needs.
PEL confirmed the acquisition but did not disclose financial specifics due to a non-disclosure agreement. The assets acquired include concessions in Dadu, Kirthar, Tajjal, and Qadirpur, as well as leases for Bhit and Qadirpur.
