Kuwait Petroleum decides to wind down its operations in Pakistan

 Foreign E&P companies worried about Rs2,700 billion circular debt in gas sector: Report

Tuesday, December 24, 2024

Islamabad (UrduPoint News Today / Pakistan Point News - 24th December, 2024) Gulf company Kuwait Petroleum has decided to wind down its operations in Pakistan. According to a report by Jang Newspaper, Kuwait Foreign Petroleum Exploration Company (KFPE) has started winding down its operations in the oil and gas sector in Pakistan, for which the company has sold key assets worth about 60 million to Pakistan Exploration Private Limited.

A senior official of the Ministry of Energy said that foreign E&P companies are worried about the circular debt of Rs 2,700 billion in the gas sector, of which Rs 1,500 billion, including $ 600 million, are stuck with domestic and foreign E&P companies, which was due to non-payment by Sui Gas companies. In addition, the one-year delay in approving the amendment to the E&P Policy 2012 also led to the Kuwaiti company’s decision. The Gulf company will invest in other countries with the proceeds from the sale of its assets in Pakistan. It is being told that KPC is a subsidiary of Kuwait Petroleum Corporation. KPC was established in 1981. This company works to discover and expand crude oil and natural gas in foreign countries, including Australia, Asia, Africa, North America and Europe. On the other hand, India is keen to elevate its partnership with Kuwait to a strategic level. In this regard, Indian Prime Minister Narendra Modi also visited the Gulf country where the Emir of Kuwait, Sheikh Mishaal Al-Ahmad Al-Jaber Al-Sabah, presented Indian Prime Minister Narendra Modi with the Mubarak Al-Kabir Medal as a token of appreciation and gratitude from the Kuwaiti people. On this occasion, in a brief statement regarding the strengthening of relations between India and the State of Kuwait, the Indian Prime Minister expressed his desire to elevate bilateral relations to a strategic level.

He said that bilateral relations with Kuwait have reached the level of a strategic partnership. The two countries have deep and historical ties. The strong roots of our historical relations should be in line with the fruits of our partnership in the 21st century. The vision of the two friendly countries to achieve multi-dimensional development has many aspects in common. Our relations are progressing well. It would not be out of place if I say that relations are moving towards new horizons and we are eagerly moving forward in our relations in various fields including defense, trade, investment and energy.