KUFPEC’s diversified portfolio boosts Kuwait’s energy reach

KUWAIT CITY, Oct 12: The local oil industry is undergoing major transformations and rapid advancements, confirming the intent to expand its international reach and secure a solid position in global energy markets. Sources informed the newspaper that Kuwait Foreign Petroleum Exploration Company (KUFPEC), the international investment branch of the local oil sector, is leading efforts to intensify its global presence and competitive edge. Sources said the company intends to systematically and gradually raise its oil production to exceed 120,000 barrels of oil equivalent per day in the coming years, with a target set for 2030. Sources pointed out that this ambitious goal is set against the backdrop of the current average production of the company, which is around 83,000 barrels of oil equivalent per day, indicating a remarkable increase and an expected improvement in its operational and production capabilities.

Sources asserted that this significant rise will increase the financial revenues of the state and support the overall budget, especially considering the recent accomplishments of KUFPEC and its strong performance in exploration, development and drilling activities in various concession areas, in collaboration with major global firms. On the operational side, the newspaper obtained information that the portfolio of KUFPEC has expanded to include about 30 investment projects. These are administratively and technically organized into two geographic regions for international operations: the first comprises Asia, Europe and Africa with promising and productive oil and gas wells and fields, while the second consists of Canada and Australia, which are focusing on liquefied natural gas (LNG) and shale oil projects and conventional fields.

This diverse and strategic portfolio helps mitigate geopolitical and economic risks, while ensuring the continuity of production flows despite the ongoing volatility and price fluctuations in global energy markets. This major transformation and resounding success are attributed to the crucial role played by the parent company, Kuwait Petroleum Corporation (KPC), in revitalizing KUFPEC and helping it overcome setbacks. The prospect of liquidating KUFPEC was raised a few years earlier when it was incurring losses on its foreign investments, but the support of KPC enabled the formulation of a comprehensive rescue and backing plan, which included direct and indirect financial and technical assistance. Without KPC’s contribution, KUFPEC would not have emerged from the cycle of accumulated losses that plagued it in previous years.

The foresight of KPC and its seasoned leadership steered KUFPEC toward achieving solid and sustainable profits by restructuring financial obligations, securing funding for major capital projects, forming partnerships with leading global and host-country national firms, and coordinating the exchange of engineering and geological expertise among KPC subsidiaries to maximize operational benefits. The current success, reflected in the production growth and diversified investment portfolio of KUFPEC, aligns with the 2040 vision of KPC.

This vision aims to enhance the added value of the national economy through prudent overseas investments, which secure sustainable energy resources for the future generations. It also intends to position Kuwait among the nations successfully investing in the global upstream sector, and utilizing the skilled and qualified national workforce capable of managing complex projects in different continents and international oil and gas fields, hence, raising the status of Kuwait in global economic forums.

By Najeh Bilal Al-Seyassah/Arab Times Staff