KUWAIT FOREIGN Petroleum Exploration Company (Kufpec) has set a five year target of doubling its daily production of 30,000 bpd of oil equivalent.

Having fully recovered last year from accumulated losses since its establishment in 1981, the company, which manages Kuwaiti upstream assets overseas, is said to be looking to include concessions in Libya, Algeria, Iran and Malaysia to its already extensive portfolio. The company currently operates in Tunisia, Sudan, Egypt, Yemen, Pakistan, Indonesia, Australia and China.

Strong results last year have set the stage for Kufpec expansion, though the company recently appointed J P Morgan Chase as financial adviser to help it divest a sizeable chunk of its stake in the Seram non-Bula production sharing contract in Indonesia.

Kufpec holds 92.5 per cent operated equity in the production sharing contract, and is looking to sell a 40 per cent interest in the licence, where the phased development of its Oseil oilfield is underway.

Under the Oseil development, Kufpec Indonesia Ltd is conducting an engineering, procurement, installation and commissioning project at the field.

The contract includes the installation of a fractionation unit to produce blending stocks, high sulphur fuel oil and naphtha. The field is expected to produce 18,000 bpd by the first quarter of next year.

Kufpec has invested $59 million so far in the concession, and plans to spend another $182 million in the next five years, according to sources. Elsewhere in Indonesia, Kufpec has spent $267 million in the Natuna Sea concession, planning to invest another $98 million in the next five years.

As well as Kufpec managing exploration activities outside Kuwait, the country also manages other international assets through Kuwait Petroleum International (KPI).

KPC has, since inception, had a strategy of securing markets to sell Kuwaiti crude and oil products.

Activities started in Europe in 1983 and gradually expanded by the acquisition of marketing and refining petroleum products companies in Europe.

While the main objective was to secure markets, with time and with the expansion of operations, it eventually became necessary to establish an office in Europe to manage the operations.

London was chosen as the head office of KPI, which is in charge of managing the group of international companies which refines and markets petroleum products via fuel stations in several European countries, Thailand and Hong Kong, on behalf of KPC Holdings (Aruba).

The company presently operates two refineries in the Netherlands and Italy and nearly 5,400 fuel stations under the 'Q8' logo. It also markets around 290,000 bpd of product to 10 European countries and Thailand.

However, KPI moved back to Kuwait last year, a move which is likely to reduce expenditure from $31 million per year to nearly $27 million per year.

But the move will not diminish KPI's involvement in Europe. Last year, senior officials of the company stated that it was looking to expand its oil refining operations in Europe and look for more foreign partners.