Established in April 1981 by its parent company Kuwait Petroleum Corporation (KPC), Kuwait Foreign Petroleum Exploration Company (KUFPEC) is an international upstream company, engaged in exploration, development and production of crude oil and natural gas outside the State of Kuwait
KUFPEC is active in 15 countries spanning five continents: Australia, Asia, Africa, North America and Europe.
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KUFPEC’s SEAR continues to be a growth area for KUFPEC and during 2015 witnessed further increased activity with the drilling of 17 development wells and five Exploration wells. KUFPEC’s net share of production from the region during 2015 was 50,426 boepd.
The SEAR 2015 highlights included the drilling of the first commitment well in Jati EL, Pakistan and the drilling operations continued at the second commitment well. At Bhit Gas field, second phase of compression (Baby Booster Compressors) successfully installed with an estimated additional production of 10 billion cubic feet (bcf). Technical studies continued to explore the deeper targets in Qadirpur Pakistan.
Other 2015 highlights include achieving first gas from Pelikan field in Natuan Sea Block “A” (NSBA), Indonesia, and water injection and gas lift operations commencement in PM-304, Malaysia..
KUFPEC has been present in Pakistan since 1987 and has invested over US$ 1 billion to make Pakistan a core business center for the company.
The recently acquired Paharpur block is KUFPEC’s second operated asset in the country and is its first in Khyber Pakhtunkhwa, Pakistan. KUFPEC currently has producing interests in Qadirpur, Zamzama, Kadanwari, Bhit, Badhra, Sukhpur and Zarghun blocks and is the second largest gas producer among foreign exploration and production companies operating in Pakistan.
Jati Exploration License (EL) KUFPEC 75%
Jati EL is the first KUFPEC operated exploration block. It was awarded on the twelfth of October 2012 with minimum work program of acquiring 500 line kilometers of 2D seismic and drilling of two exploration wells. Upon completion of G and G studies, 2D seismic acquisition and processing, two drillable prospects were approved by the JVPs. Due to operational and community challenges, drilling the first exploration well was slightly delayed. The well, Jhim-One was drilled down to 3,515m to test multiple reservoir and was plugged and abandoned with good gas shows. The second exploration well, Kundan-One, was spudded on the ninth of October 2015 to test the multiple reservoirs, and drilling is continued at 3,547 meters.
Paharpur EL KUFPEC 100%
The block was awarded to KUFPEC on the thirteenth of March 2015 as operator, covering an area of about 2,261 km2, and located in the northeastern part of Pakistan in Khyber Pakhtunkhwa province. Existing oil and gas / condensate fields are present with multiple reservoirs in the north in Bannu Kohat basin and Potwar basin. The minimum work commitment consisted of 2D and 3D seismic acquisition plus two exploratory well.
During 2015, vintage G and G data was purchased and reviewed, Environmental Impact Assessment (EIA) studies were completed and geological field studies was initiated. It is planned to acquire new seismic data in the second quarter 2016 and to drill first exploratory well by fourth quarter 2017.
Sukhpur EL KUFPEC 25%
The block is located just north and east of Badhra Gas field, farmed-in in 2010 with the minimum work commitment of 2D seismic acquisition and two exploratory wells. The first exploratory well, Lundali-One, was drilled in 2013 and tested 33 million stanard cubic feet per day (MMscfpd) from the secondary objective of Khadro Sands. Due to limited accumulation, production was terminated in 11 months under Extended Well Testing period (EWT). JVPs agreed to drill a second exploratory well but was delayed due to community issues, subsequently the license will expire in February 2016. JVPs applied for a further 18 months extension without any additional work commitment.
Bhit & Badhra Gas fields KUFPEC 34 %
These gas fields are located in the Kirthar fold belt of the Lower Indus basin. During 2015, the average field gross sales were 51,209 boepd (KUFPEC net share 17,411 boepd) which was higher than the previous year due to installation of second phase of compression (Baby Booster Compressors) and additional development wells.
A total of three more development wells were drilled and completed during 2015 (one in Bhit field and two in Badhra field). The second phase of the compression project initiated in the second quarter 2014 to recover additional incremental reserves until 2022; the compression project was completed in early 2015. These booster compressors ensure maximum drainage of the reservoir at 50 psig suction pressure. Bhit South MK-One was an exploratory well, spudded on the eighteenth of November 2014 to test deeper targets of Mughal Kot Formation. The well was plugged and abandoned in March 2015 due to lack of reservoir development. Currently eight wells are producing from Badhra, including two drilled during 2015 with an average sales production of 7,307 boepd (net to KUFPEC).
During 2015, Bhit & Badhra fields sold about 109.5 BCF (gross) of gas as compared to 101 BCF during 2014.
Qadirpur Gas Field KUFPEC 13.25 %
Qadirpur gas field is the second largest field in Pakistan. Production averaged 56,845 boepd (KUFPEC net 7,532 boepd) during 2015. Four infill wells were drilled and commissioned during 2015 to sustain the production. Additional development wells are planned during 2016 to produce gas from Habib Rahi Limestone (HRL), which is the secondary reservoir in the area. Technical studies are continued to drill Qadirpur Deep-2 during end 2016 to determine the deeper potential of the field.
The Development and Production Lease will expire in 2017; an addition five-year extension is available under the Production Concession Agreement (PCA).
Kadanwari Gas Field KUFPEC 15.789 %
Gross production from the Kadanwari gas field averaged 10,481 boepd (KUFPEC net 1,655 boepd) which was substantially lower than the previous years due to watering-out of some wells, and the newly drilled development well did not perform as expected. It is planned to drill three more development wells during 2016. Currently the Kadanwari plant is running at capacity.
Zamzama Gas Field KUFPEC 9.375 %
The Zamzama gas field is in natural decline, with gross production averaging 19,258 boepd during 2015 (KUFPEC net 1,805 boepd) as compared to 30,509 boepd in 2014. Zamzama field was operated by BHPP Billiton, which sold its entire Pakistan share to a local company.
Zarghun South KUFPEC 3.75 %
Small gas field, operated by Mari Gas Company Limited with the current average sales of 12.5 MMscfpd. The Operator is planning to drill one development well during 2016 to sustain the production..
PM-304 PSC KUFPEC 25%
The PM-304 PSC is located offshore, east of the Peninsular Malaysia. The block contains two producing oil fields, Cendor and West Desaru, and other undeveloped fields, namely Irama, East Desaru, Cendor Graben, East Cendor and Kemasik. Cendor field came online in 2006, whereas West Desaru was on stream in 2013. In 2015, six additional development wells were drilled and completed in Cendor and West Desaru as part of the Cendor Phase Two (CP Two) development program.
Successful appraisal drilling was completed in 2014 in East Cendor and Kemasik, the results of which were the basis for evaluating a new area development plan during 2015.
KUFPEC’s net share of production from the PM304 PSC during 2015 was 3,701 boepd. This was the result of commencing water injection and gas lift operations in Cendor and West Desaru, as well as implementing the West Desaru reservoir management plan..
Buton PSC KUFPEC 30%
The Buton Production Sharing Contract (PSC) covers an area of 3,047 km² that extends both onshore and offshore Buton Island, southeast of Sulawesi. The block was awarded in 2007. Gravity, magnetic and seismic surveys were acquired in 2008/2009. During 2012 all remaining commitments were fulfilled with the drilling of one exploration well (Benteng-One) which had sub-commercial oil shows. Due to this discouraging result, KUFPEC and the Operator decided to relinquish this block. During 2015 the block was still under the relinquishment process.
Natuna Sea Block ‘A’ (NSBA) PSC KUFPEC 33.33%
The Natuna Sea Block A (NSBA) PSC is located in the Indonesian Natuna Sea and has been supplying gas to Singapore from the Anoa field since 2001 and the Gajah Baru field since 2011. Naga field commenced first gas production in November 2014 and Pelikan achieved first gas production in March 2015. Anoa West One (AW-One) appraisal well was drilled to appraise Lama Formation and was plugged and abandoned; results are currently under evaluation. KUFPEC’s net share of production from the NSBA PSC during 2015 was 13,581 boepd.
Seram PSC KUFPEC 30%
The Seram PSC is located to the east of Seram Island near West Papua where oil is being produced since 2002 from the Oseil field, Nief Utara-A field, and Oseil Selatan field. Development drilling activities continued during 2015 after approval of Plan of Further Development (POFD) with successful drilling of Oseil-27 and Oseil-28 wells that were put on production; drilling will continue into 2016. Lofin-Two well was spudded in the fourth quarter 2014 to appraise oil and gas discovery from the 2012 Lofin-One well; estimated Gas In-Pace (GIP) is One-Three trillion cubic feet (TCF). Further studies / evaluation of Lofin will be carried out in 2016.
KUFPEC’s net share of production from the Seram PSC during 2015 was 940 boepd.
ONWJ PSC KUFPEC 5%
The ONWJ PSC is located offshore northwest Java holds some 51 oil and gas fields. Oil production commenced in 1971 and gas sales in 1976.
During 2015 KUFPEC continued its non-participation in most of the exploration and development activities due to PSC expiry in January 2017. KUFPEC’s net share of production from the ONWJ PSC was 2,181 boepd in 2015.
SES PSC KUFPEC 5%
The SES PSC, located offshore in southeast Sumatra, was acquired from Risco Energy in 2013. The SES complex contains some 34 oil and gas fields. Oil production commenced in 1971 and gas sales in 2006. During 2015, KUFPEC did not participate in capital projects, instead focusing on maintenance and workover projects to sustain production until PSC expiry in 2018. KUFPEC’s net share of production from the SES PSC during 2015 was 1,559 boepd.
Ephindo (CBM) PSC KUFPEC 40%
During 2013, KUFPEC acquired 40% of Ephindo Company from Risco Energy, which holds varying interests in seven Coal Bed Methane (CBM) fields. These CBM PSCs are located in East Kalimantan and South Sumatra, and primarily in the exploration and appraisal stage. KUFPEC is further evaluating the potential of the project to come up with a future strategic plan.