PEL strengthens Pakistan’s energy sector with KUFPEC asset acquisition

ISLAMABAD: Petroleum Exploration (Pvt) Limited (PEL), a leading private-sector Exploration and Production (E&P) company in Pakistan, has achieved a significant milestone by acquiring key energy non-operated assets from Kuwait Foreign Petroleum Exploration Company (KUFPEC).

The newly acquired assets include concessions in Dadu, Kirthar, Tajjal and Qadirpur, home to some of the country’s most prolific natural gas production fields, such as the Bhit and Qadirpur leases. These additions expand PEL’s resource base, enabling the company to better meet the country’s increasing energy needs while reducing dependence on expensive energy imports, such as liquefied natural gas (LNG).

This acquisition also underscores the deepening economic collaboration between Pakistan and Kuwait. By acquiring these assets from KUFPEC, a prominent Kuwaiti entity, PEL reinforces the longstanding relationship between the two nations. The deal is expected to pave the way for greater economic engagement, not only in the energy sector but also across other fields of mutual interest.

In addition to enhancing energy security, the integration of these assets will generate employment opportunities, drive technology transfer and support local skill development. These contributions align with the country’s broader objective of fostering sustainable economic growth and achieving energy independence.

The acquisition’s timing is particularly significant as Pakistan grapples with rising energy demands and challenges in domestic production. With expanded reserves and production capacity, PEL is poised to play a key role in stabilising the country’s energy supply.

While, KUFPEC has emphasised that despite this divestment, it is working with the government of Pakistan, Director General Petroleum Concession and major exploration and production companies. It is also preparing for the upcoming offshore bidding round by the Pakistani government.