Kuwait invests $1.5 Billion in Indonesian offshore gas development

Kuwait's state-owned oil company has taken a major step in Southeast Asia. 

Through its subsidiary Kufpec, it has received the green light from the Indonesian government to move forward with the development of the Anambas gas field, a project located in the promising Natuna Basin. 

With a planned investment of over $1.54 billion, this development reinforces Indonesia’s ambition to become a regional gas hub and strengthens ties with global partners, according to Argus.

Key points you should know:

1. Strategic greenlight for gas expansion Kufpec has received Indonesian government approval to develop the Anambas gas field in the West Natuna Sea, paving the way for a multi-billion-dollar offshore investment.

2. Target production set at 55 million cubic feet daily The field is expected to produce around 55 million cubic feet of gas per day once operational.

3. $1.54 billion investment confirmed Kufpec’s development budget underscores long-term confidence in the Natuna region’s gas reserves and Indonesia’s regulatory framework.

4. Launch expected by 2028—or sooner Although production is scheduled to begin in 2028, Indonesian regulator SKK Migas is pushing for an earlier launch by Q4 2027.

5. Phased development strategy The plan includes drilling new production wells and installing subsea pipelines to connect Anambas to existing West Natuna infrastructure.

6. Full control with a 30-year license Kufpec holds 100% of the Anambas block and operates under a 30-year production-sharing contract, which began with a six-year exploration period.

7. Discovery dates back to 2022 The gas and condensate discovery was made in the Anambas-2X well two years ago, following Kufpec’s block award in 2019.

8. Regulatory backing signals lndustry confidence SKK Migas’ active support reflects Indonesia’s ongoing strategy to attract both foreign and national investment in energy development.

9. Contribution to regional energy security The gas extracted from Anambas will serve both domestic and regional markets, reinforcing Indonesia’s energy security goals.

10. Oil & gas investment on the rise in Indonesia: Backed by government policy, total oil and gas investment in the country jumped from $14.9 billion in 2023 to $17.5 billion in 2024.

    
    
    
    
    
    

    

    Kuwait invests $1.5 Billion in Indonesian offshore gas development