Kuwait Foreign Petroleum Exploration Company (KUFPEC) is preparing to bid for additional offshore oil and gas blocks in Indonesia, with a particular focus on the Natuna Sea, the company’s top executive told Reuters on Monday.
KUFPEC, a subsidiary of Kuwait Petroleum Corporation (KPC), is an international oil and gas company involved in exploration, development, and production outside of Kuwait. Currently, the company is engaged in two offshore projects in Indonesia: the Natuna Sea Block A, and the Anambas and Ephindo exploration licenses.
“We are especially interested in potential blocks in the Natuna Sea region. This complements our ongoing efforts in developing the Anambas Block,” said Sara Al-Baker, KUFPEC’s country manager for Indonesia, in an interview with Reuters.
The company is also evaluating the Natuna D-Alpha natural gas block, which holds significant potential. Estimates suggest it could contain up to 230 trillion cubic feet of gas. However, the high carbon dioxide (CO2) content in the block presents a major challenge, according to Al-Baker.
“The main challenge is the high CO2 content,” she explained.
In addition to its ongoing projects, KUFPEC plans to participate in Indonesia’s upcoming offshore oil and gas licensing rounds.
Indonesia, under its new government, aims to reduce bureaucratic hurdles to attract more oil and gas exploration. This move is part of a broader strategy to revitalize its oil and gas sector and strengthen its energy security. The country’s energy goals have become more urgent as domestic oil production has been declining in recent years.
Indonesia, which was a member of OPEC until 2009 and rejoined the group in 2016 before suspending its membership later that year, faces a growing gap between rising oil demand and falling production. Once a net oil exporter, the country now struggles with insufficient new exploration and the natural depletion of existing reserves.
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