Business Desk 
Dec 24, 2024
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 comes as foreign energy firms face increasing challenges in the sector.
KUFPC's departure from Pakistan is due to the circular debt crisis in the gas sector, which has reached Rs2,700 billion. This includes Rs15,00 billion owed to local and foreign exploration and production companies.
A 12-month delay in amending the 2012 E&P policy further discouraged KUFPEC from continuing its operations in Pakistan.
KUFPEC, a subsidiary of Kuwait Petroleum Corporation, has been operating in Pakistan’s energy exploration since 1981. The company has planned to enhance its activities by forming alliances with local entities, such as the Oil and Gas Development Company (OCDCL) and Mari Petroleum Exploration Company (MPCL).
However, the sudden exit of the company after just one year has concerned policymakers.
In a statement, PEL highlighted the strategic importance of this acquisition in expanding its exploration portfolio and addressing Pakistan’s growing energy demands.
PEL confirmed the acquisition but did not disclose financial details as the parties were under a non-disclosure agreement.
The acquired assets include concessions in Dadu, Kirthar, Tajjal, and Qadirpur, as well as the Bhit and Qadirpur leases.
