TBY talks to Shaikh Nawaf S. Al-Sabah, Kuwait Foreign Petroleum Exploration Company (KUFPEC), on the sector.

Shaikh Nawaf S. Al-Sabah

What are some of KUFPEC's recent achievements?

The highlight of the year was the commencement of production and shipment of the first LNG cargo in October 2017 from the Wheatstone LNG project in Australia. The Wheatstone LNG project, KUFPEC's first and largest investment in international LNG production, will provide us with large-scale, stable production and cashflow for the next two decades. On top of this, we acquired an additional 15% interest in the Gina Krog field, Norway. This acquisition raised our holdings in the field to 30%, added approximately 34 million barrels in net proved and probable (2P) reserves, and boosted our Norwegian production to nearly 25,000bpd. In the liquids-rich Kaybob Duvernay shale gas project in Canada, 28 wells were drilled, 25 wells completed, and 27 wells put on production. This project provided KUFPEC with an addition of 39.5 million barrels of 2P reserves during 2017, while the production will gradually increase from its current level of 6 million bpd to reach its peak of 70 million bpd.

How has the acquisition in Gina Krog field in Norway boosted KUFPEC's portfolio?

The 30% working interest in the Gina Krog oil field, along with associated interests in the Greater Sleipner Area, add to KUFPEC's portfolio of long-term significant and immediate reserves and production. Furthermore, this project is forecasted to enhance the operational and financial performance of the company. The Sleipner Hub is the second-largest gas hub in Norway, and it will serve as a potential hub for future developments in the area. KUFPEC's recent acquisitions strengthen its position in Norway and allow for additional opportunities for national staff training and development.

How do you ensure the environmental sustainability of your operations?

Most of our portfolio consists of non-operated joint venture (NOJV) assets, so operator selection is paramount. We have a stringent set of criteria when evaluating a partner and part of the criteria is the operator's track record in health, safety, security, and the environment (HSSE). We also review the Environmental Impact Assessment (EIA) report for the asset and other relevant HSSE risk and environmental studies. As part of our global efforts to enhance HSSE and process safety performance, we sent a team abroad to one of our assets in Indonesia. This assessment is part of KUFPEC's continuous journey to safeguard its interest, influence its partners, and become a partner of choice.