During 2012, Kufpec (Kuwait Foreign Petroleum Exploration Company) and its partners drilled 13 exploration wells, with seven successful discoveries in Indonesia, Pakistan, Australia and Vietnam. It also drilled another 45 development wells over the year. For example, in Pakistan, preliminary estimates show 10 million barrels of new gas reserves were added from drilling the Kadanwari-27 and Badhra North-1 wells. No figures on 2013 activity have been released, but Kufpec hopes to match the previous years achievements.
The long-term targets are tough. Kufpec was unable to meet its 2012 target of increasing production to about 90,000 boe/d. This years target is 100,000 boe/d. In 2012, the company reported profit of $201m, compared with $273m in 2011. It added 18.7 million barrels of oil equivalent in reserves from two production and development acquisitions, achieving a reserves replacement ratio of 258 per cent. Total revenues in 2012 were stable at about $1.3bn.
Kufpecs financial capabilities look set to increase. This year, it received preliminary approval from the Supreme Petroleum Council, which oversees hydrocarbons policy in Kuwait, to increase its investment capital to KD1.2bn ($4.2bn) from KD200m. In August, the companys position was further strengthened by the signing of a $750m loan from the US JP Morgan and National Bank of Kuwait, which will be used for Kufpecs expansion plans.