- KUFPEC “recovers its investments” by promoting its property
- The corporate’s resolution raised critical considerations amongst policymakers.
- PEL additionally confirms that it has made advance funds to the Kuwait Overseas Petroleum Exploration Firm.
ISLAMABAD: Kuwait Overseas Petroleum Exploration Firm (KUFPEC) has begun the method of leaving Pakistan’s oil and gasoline sector by promoting its main property to Pakistan Exploration (Non-public) Restricted (PEL) for about $60 million, based on a senior power ministry official. Speak to Information on monday.
“Overseas exploration and manufacturing firms are more and more pissed off, primarily as a result of large round debt within the gasoline sector, which has reached 2,700 billion rupees,” the supply advised the newspaper.
“Of this quantity, Rs1,500 billion, together with $600 million owed to home and overseas exploration and manufacturing firms, stays unpaid as a consequence of defaults by gasoline firms. The 12-month delay in approving amendments to the Exploration and Manufacturing Coverage 2012 additionally contributed The supply mentioned of the choice of the Kuwait Overseas Petroleum Exploration Firm (KUFPEC).
In response to the official, Kuwait Overseas Petroleum Exploration Firm has taken the choice to get well its investments by promoting its concessions and property in several areas round Pakistan as a way to reinvest in different international locations.
In April 1981, KUFPEC was established as a division of Kuwait Petroleum Company (KPC). The corporate’s main focus is on discovering, growing and extracting pure gasoline and crude oil outdoors Kuwait. It has operations in ten international locations on 5 continents – Europe, Asia, Africa, North America and Australia.
It’s value noting that the Kuwait Overseas Petroleum Exploration Firm introduced in a press launch dated November 23, 2023, that it had signed memorandums of understanding with a number of Pakistani firms, together with Prime Pakistan Restricted, Mary Petroleum Firm Restricted (MPCL), and Oil and Gasoline Improvement Firm Restricted (OGDCL). ). The purpose of the MoUs was to boost Kuwait Overseas Petroleum Exploration Firm (KUFPEC)’s exploration portfolio, strategic alliances, and asset worth in Pakistan.
KUFPEC CEO Mohammed Al Haimer mentioned on the time: “The MOUs not solely strengthen strategic partnerships to increase our exploration portfolio in Pakistan but in addition present important alternatives to boost KUFPEC property, unbiased peer critiques, change information, and leverage the experience of our international companions.” “
Nevertheless, only one yr later, Kuwait Overseas Petroleum Exploration Firm (KUFPEC)’s resolution to promote its property and concessions raised critical considerations amongst decision-makers in Pakistan. When contacted, PEL confirmed the acquisition, saying, “Sure, now we have acquired the property of KUFPEC Pakistan after profitable the tender.”
Nevertheless, the corporate refused to reveal the worth of the property, citing non-disclosure settlement (NDA) obligations. PEL additionally confirmed that it had made advance funds to the Kuwait Overseas Petroleum Exploration Firm (KUFPEC). In response to a press launch on PEL’s web site, the acquisition contains property in Pakistan’s Dadu, Kirthar, Tagal and Qadirpur concessions, together with Bhit and Qadirpur leases.
“This strategic acquisition represents an necessary milestone for PEL because it expands its exploration portfolio and strengthens its presence within the Pakistani power sector. This underscores PEL’s dedication to discovering and harnessing the nation’s power potential.
The acquisition is in step with PEL’s long-term technique to discover power alternatives and unleash Pakistan’s huge pure assets. “We’re assured that these property will assist us meet the rising power demand in Pakistan,” PEL mentioned.
PEL emphasised its dedication to exploring and growing pure assets in Pakistan and its position in contributing to power safety and sustainable progress within the nation.
