The Kuwait Foreign Petroleum Exploration Company (KUFPEC) has been granted approval to proceed with the development of the Anambas block in Indonesia’s Natuna Sea, according to a Reuters report.
The project represents a significant investment of approximately $1.54bn aimed at producing 55 million standard cubic feet per year, with an estimated 185 billion cubic feet (bcf) of total gas sales.
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KUFPEC is set to make a final investment decision (FID) early next year, with production due to commence in 2028, according to Sara Al-Baker, the country manager.
Indonesia has been identified as a key location for the company’s growth, with CEO Eisa Al-Maraghi stating: “We are working with other partners in Indonesia to reach a mutual agreement to look into more assets to be acquired.”
The Anambas block development plan includes the installation of subsea pipelines that will link the field to the existing West Natuna Transportation System.
KUFPEC expects to supply gas to both domestic and regional markets upon the project’s production start. This marks KUFPEC’s second venture in the gas-rich Natuna Sea, where it already holds a 33% participating interest in Natuna Block A, which supplies gas to Singapore.
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By GlobalDataIn addition to the Anambas block, KUFPEC has been actively increasing its presence in Indonesia, having joined two consortia last year to explore the Melati and Amanah blocks.
The company is also concluding a joint study on the Natuna D-Alpha block, known for its vast gas resources albeit with high CO₂ content.
Indonesia, once a member of OPEC, has become a net oil importer due to declining production from ageing wells and insufficient investment.
President Prabowo Subianto is focused on reversing this trend to mitigate the country’s dependence on imported energy.
KUFPEC’s commitment to exploring oil and gas opportunities in the Natuna Sea aligns with President Subianto’s strategy to boost domestic production and reduce fuel imports.
