Kuwaiti Petroleum Exploration Firm Exits Pakistan

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 development comes as foreign energy firms increasingly retreat due to mounting challenges in the sector, reported a national daily. The decision stems from the gas sector’s circular debt crisis, which has ballooned to Rs. 2,700 billion, including Rs. 1,500 billion owed to local and foreign exploration and production companies. A prolonged 12-month delay in amending the 2012 E&P policy further discouraged KUFPEC from continuing operations in Pakistan. KUFPEC, a subsidiary of Kuwait Petroleum Corporation, has been active in Pakistan’s energy exploration since its establishment in 1981. The company had previously aimed to strengthen its presence through partnerships with local entities such as OGDCL and MPCL, however, its abrupt exit just a year later has raised concerns among policymakers. In a statement, PEL highlighted the strategic significance of this acquisition in expanding its exploration portfolio and addressing Pakistan’s growing energy demands. PEL confirmed the acquisition but withheld financial details due to a non-disclosure agreement. The acquired assets span concessions in Dadu, Kirthar, Tajjal, and Qadirpur, along with the Bhit and Qadirpur leases.