Indonesia approves Kuwaiti explorer to develop Anambas block in Natuna Sea

Officials said that the Kuwait Foreign Petroleum Exploration Company has received approval to develop the Anambas Block in Indonesia where it hopes to acquire additional projects.

KUFPEC plans to invest $1.54 billion in developing the Anambas Block to produce 55 millions standard cubic feet a day with an estimated 185 trillion cubic feet of gas sales. Upstream oil and gas regulator SKK Migas confirmed this.

Sara Al-Baker, the country manager for the company, told reporters that they expect to make a final decision on investment early next year and production to begin in 2028.

Eisa Almaraghi, the company's chief executive, described Indonesia as an important location for its expansion.

Al-Maraghi said at a press briefing that he was working with partners in Indonesia on a mutually agreed agreement to examine more assets. He declined to provide details.

KUFPEC stated that the Anambas Development includes the installation of subsea pipes connecting the field with existing facilities in West Natuna Transport System.

The company said that it expects to supply gas to domestic and regional markets once production begins.

Anamabas is KUFPEC’s second project, in the richly gaseous Natuna Sea. It holds a 33% participation in Natuna Block A which supplies gas for Singapore.

The company has increased its activities in Indonesia over the past few years. It is a member of two separate consortiums that signed contracts to explore Indonesia's Melati Block and Amanah Block last year.

Al-Baker stated that KUFPEC is currently reviewing the results of its joint-study in the Natuna Sea.

Natuna D-Alpha is a gas with a high carbon dioxide content.

Indonesia, once a member country of OPEC is now a net oil importer due to the ageing of wells and lack investment. President Prabowo is eager to reverse this trend and reduce reliance upon imported energy. (Reporting and editing by Clarence Fernandez; Fransiska Naangoy)

(source: Reuters)