Kufpec will soon be the second largest shareholder in the Chevron-operated 8.9mn tons/year Wheatstone LNG project in Australia. Subject to closing, it will pay $1.14bn for Shell’s 8% stake in the Wheatstone-Lago offshore gas field as well as its 6.4% in the LNG project itself.

Completion will take Kufpec’s stake in the $30bn project to 13.4%. The company says that the acquisition will add 139mn boe to its resource base (implying around 830bn cu ft of gas), allowing the firm to meet its reserves target for the next four years. Kufpec projects that the deal will add 18,350 boe/d to the firm’s overall production by 2018. In a statement, company CEO Shaikh Nawaf al-Sabah said: “Kufpec is delivering on its strategic goals of bringing value to the Kuwait oil sector through increased production that has a strategic tie-in with KPC, along with technology transfer and training opportunities to develop Kuwaiti manpower…the production and cash flows from the acquisition will provide stable revenue to Kufpec for a quarter century.” (CONTINUED - 916 WORDS)