KUWAIT: The Kuwait Foreign Petroleum Exploration Company (KUFPEC) announced on Monday that it has begun the exit procedures from KUFPEC Norway Limited by selling its entire stake and assets in Norway to a Chinese company.

KUFPEC continues to meet its strategy of rationalizing the current portfolio and maximize value by announcing that KUFPEC UK Limited, a KUFPEC subsidiary, is divesting its 100 percent shareholding in KUFPEC Norway AS (KNAS) to PGNiG Upstream Norway AS, subject to customary approvals by the Norwegian authorities, a press release issued by the company said on Monday. The deal is expected to be completed in Q4 2023 and has an effective date of Jan 1, 2023.

KUFPEC entered Norway in 2013 with the acquisition of Norske AEDC and has grown its portfolio through both acquisition and participation in licensing rounds. KNAS has stakes in several producing and exploration fields on the Norwegian continental shelf, the release added.

KUFPEC Chief Executive Officer Mohammad Salem Al-Haimer stated, “We have achieved and exceeded all the targets set when we entered Norway. KNAS has provided KUFPEC with opportunities to develop our Kuwaiti young professionals, gain technological and best practices expertise and achieved high rate of return on investment. The Norway Portfolio has achieved a cumulative net income to KUFPEC exceeding $600 million and an investment payback by early 2022, with an approximate IRR of 14 percent from 2013 to 2022.

This transaction has allowed both parties to meet their respective strategic targets and group synergies. Although, we have sold our current portfolio, Norway is still considered one of our core areas of interest and aligns with KUFPEC’s strategic directions, focusing on enhancing our portfolio. We will continue evaluating opportunities and focus on organic growth”, he said.

KUFPEC is an international upstream company engaged in exploration, development and production of crude oil and natural gas outside the State of Kuwait and is a wholly owned subsidiary of Kuwait Petroleum Corporation.