KUFPEC Acquires One-quarter Stake in Pangkah
Kuwait Foreign Petroleum Exploration Co (KUFPEC) has completed its US$330-million acquisition of ConocoPhillips (Pangkah) Ltd ("CPPL"), a wholly owned subsidiary of ConocoPhillips, the Kuwait News Agency (KUNA) reported. CPPL holds a 25 percent participating interest in the Pangkah block located in the East Java Sea, Indonesia.
KUFPEC Board Chairman Bader Al-Khashti told KUNA the Pangkah block covers an area of 784 square kilometers in the prolific East Java Sea. He added that the block contains the Ujung Pangkah oil and gas field, where hydrocarbon production commenced in April 2007.
Gas production from Ujung Pangkah is currently above 60 mmscfd and is expected to rise to a plateau of 100 mmscfd. Oil production is expected to commence in 2009, rising to a peak of 25,000 bopd.
The Ujung Pangkah field holds estimated gross recoverable resources of 170 mmboe. Hess Corp., which holds a 75-percent participating interest in the block, is the operator.
The acquisition is an important part of KUFPEC's plans to expand in Southeast Asia, with particular focus on Indonesia.
KUFPEC now holds participating interests in five production sharing contracts in Indonesia. The acquisition supports KUFPEC's stated target of producing 100,000 boepd by 2010.
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Company: Kuwait Foreign Petroleum Exploration Co. (KUFPEC) more info
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