Eisa Abdulrahman Al Maraghi, CEO of Kuwait Foreign Petroleum Exploration Company (KUFPEC), talks to The Energy Year about investment plans to triple the company’s portfolio and banking on gas and LNG to gain international competitiveness. As Kuwait’s international upstream company, KUFPEC engages in oil and gas exploration and production globally.
Can you provide an update on the changes that have been made to KUFPEC’s international portfolio?
One of our strategic priorities is streamlining our portfolio to improve profitability. We started in 2020, and in the past year, we have exited non-core and underperforming assets, including the divestment of our production assets in Pakistan.
The resulting capital is being reinvested into higher-yield ventures, and we are also pursuing the acquisitions of suitable gas assets. At the moment, 76% of our portfolio is gas and LNG, and 24% is oil. We see our gas position as a competitive advantage and a long-term priority, and seek to grow it. In 2024, we acquired stakes in two gas exploration blocks in Indonesia: 30% of Amanah and 24.5% of Melati. Our goal is to increase the share of gas and LNG in our portfolio to 80%.
Do you have any production targets or updates to share?
The main pillar of our strategy is exploration-led growth alongside IOCs, to benefit from their expertise. The second pillar is corporate M&As, focusing on acquiring oil and gas assets or mid-cap companies.
In 2025, we will fast-track the Mina West development project in the North East El Amriya block in Egypt, where we began exploration in 2023. We have reached a positive FID and aim to start gas production by the end of 2026.
El Amriya is a standout, having moved from exploration to production in under three years with existing infrastructure. We expect first gas production by the end of 2026, reaching the planned production in 2027. The fields have a long plateau period, ensuring sustained production.
In Indonesia, we operate the Anambas block and plan to invest around USD 1.5 billion over its lifecycle, targeting production by 2028. It demonstrates KUFPEC’s growth potential as an offshore oil and gas operator, consistent with the KUFPEC 2040 Strategy.
What informs your decision to commence operating in new countries?
We will finalise the criteria for operating new assets by Q4 2026. We are building strategic partnerships with IOCs and investment banks. Right now, our priority is acquiring producing assets to capitalise on our strong cash position with an IRR [internal rate of return] threshold levelled at 15% as we focus on value over volume.
Our overarching goal is to grow production from 80,000 boepd to 200,000 boepd over the next 10 years, targeting 8-10% annual growth. We aim to add 60,000 boepd by 2029 and 90,000 boepd by 2034. We aim to triple our portfolio size over the next decade through a carefully structured capital outlay of around USD 6 billion in global investments. Of this, around USD 4 billion will go towards acquisitions, and USD 2 billion towards developing assets, especially exploration or pre-FID. Our plan easily surpasses the industry’s typical 2-3% growth.
Can you elaborate on the role of LNG in your strategy?
LNG is central to our growth. In Australia, we are involved in the Chevron-operated Wheatstone project and hold non-operated stakes in the Iago and Julimar-Brunello fields. KUFPEC’s participation in Wheatstone aligns with our strategy to invest in upstream oil and gas projects outside Kuwait, particularly in regions with stable regulatory environments and long-term production potential. The company aims to continue to grow its LNG portfolio.
How are these initiatives impacting your financial results and your contributions to the development of Kuwait’s energy industry?
KUFPEC’s financial position is very solid, with billions of dollars in cash and zero debt. In 2024, KUFPEC registered revenues of USD 1.4 billion, EBIT of USD 1.25 billion and net profit of USD 740 million. We are self-funded and financially independent, but we contribute significantly to KPC.
Several KPC subsidiaries, including KUFPEC, reinvest profits into Kuwait’s energy industry. This helps ensure a steady capital inflow to balance potential oil price volatility.
KUFPEC’s international ventures reinforce Kuwait’s resource base and support KPC’s production sustainability and reserve replacement goals. In 2024 alone, KUFPEC drilled four exploration wells and 25 development wells, achieving a 67% success rate in exploration activities.
We are also a source of international expertise for Kuwait. We have assigned subject matter experts to KOC to support the economic evaluation of complex fields, an area where integrated commercial and technical understanding is essential for long-term success, and we send KOC and KGOC [Kuwait Gulf Oil Company] staff to operations in Canada, Australia, Indonesia and Egypt for hands-on experience.
In parallel, we have hosted KOC employees on attachment programmes with KUFPEC’s exploration team, directly involving them in ongoing offshore projects. These hands-on opportunities allow Kuwaiti professionals to build technical depth and confidence in navigating offshore exploration and appraisal workflows.
