Kuwait Foreign Petroleum Exploration Company (KUFPEC) is exiting Pakistan’s oil and gas sector by selling its assets worth $60 million to Pakistan Exploration (Private) Limited (PEL). This move reflects the growing trend of foreign energy firms retreating from Pakistan, citing increasing challenges within the sector, as reported by a national daily.
The decision comes amid the gas sector’s ongoing circular debt crisis, which has surged to Rs. 2,700 billion, including Rs. 1,500 billion owed to both local and foreign exploration and production companies. Additionally, a delay of over a year in amending the 2012 Exploration and Production (E&P) policy further discouraged KUFPEC from continuing its operations in Pakistan.
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KUFPEC, a subsidiary of Kuwait Petroleum Corporation, has been involved in Pakistan’s energy exploration since 1981. The company had initially sought to strengthen its presence in the country through partnerships with local companies like OGDCL and MPCL, but its sudden exit just a year after these efforts has raised concerns among policymakers.
In a statement, PEL emphasized the strategic importance of this acquisition, which will help expand its exploration portfolio and contribute to addressing Pakistan’s increasing energy demands. PEL confirmed the acquisition but refrained from disclosing financial details due to a non-disclosure agreement. The assets acquired by PEL include concessions in Dadu, Kirthar, Tajjal, and Qadirpur, as well as the Bhit and Qadirpur leases.
