Kuwait oil firm to spend $300m on acquisitions

Mustaqim Adamrah, The Jakarta Post, Jakarta | Wed, 02/25/2009 1:52 PM  

The Kuwait Foreign Petroleum Exploration Co (Kufpec) plans up to US$300 million of investment in the Indonesian oil and gas sector despite slumping oil prices. 

Deputy managing director A. Naser Y. Al-Fulaij said Tuesday the company planned to realize the investment within two to three years by acquiring production facilities from other companies. 

"We may invest $200 million or $300 million in the very short term (around two to three years) in oil and gas," he told reporters after a meeting with Vice President Jusuf Kalla at the vice president's office. 

"We want to acquire more production and reserves in Indonesia. We're looking to make acquisitions . of two to three companies," he said, but refused to disclose the candidate companies. Neither was he willing to name the locations for exploration and production that the company was aiming at. 

He said the future reserves would vary in each company Kufpec would acquire, accounting for around 20 to 30 million barrels, "or more than that . millions of barrels". 

Kufpec, a subsidiary of Kuwait Petroleum Corporation, has been operating in Indonesia for more than 20 years, according to Al-Fulaij. 

Kufpec operates in the exploration, development and production of crude oil and natural gas in Africa, the Middle East, Asia and Australia, and participates in joint ventures with similar companies in exploration and production of oil and gas both as an operator and partner, according to www.kufpec.com. 

In Indonesia, Kufpec already has as partners, United Kingdom-based Premier Oil plc, the United States-based Hess Corporation and Japan Petroleum Exploration Co (Japex), according to Al-Fulaij. 

With its partners, he said, Kufpec operated in the Natuna Sea, on Bangka Island and Seram Island. 

He said the company would consequently double its daily production of 15,000 barrels a day. 

Al-Fulaij said the planned investment would be fruitful despite declining oil prices. 

"The oil price was $40 about three years ago. It was OK then. So, it's OK now," he said.