KUFPEC net profit to dip on oil prices, oversupply

Kuwait Foreign Petroleum Exploration Company (KUFPEC) projects a significant decrease in net profits for 2025, estimating a fall to KD107,175,000 from KD226,231,000 in 2024. This downturn is attributed to a confluence of factors, including an anticipated decline in global oil prices driven by economic slowdowns in Europe and the United States, exacerbated by trade tariffs. The market is also expected to face an oil oversupply, impacting major international oil companies like ExxonMobil and TotalEnergies, with Chevron's profits also showing a decrease.

Further contributing to KUFPEC's reduced profitability are recent acquisitions made in the latter half of last year and essential maintenance activities. These include crucial upkeep on projects in Yemen, specifically within the 'Jannah 5' area of the Sab’atayn Basin (Block 18). The company's record profit in 2022, reaching approximately KD308 million, was largely due to the sharp increase in global oil and gas prices following the post-COVID-19 economic recovery.

Looking ahead, KUFPEC remains committed to its strategy of portfolio rationalization. This involves divesting unprofitable assets and pursuing value-enhancing acquisitions, as exemplified by the divestment of Block 536 WA in Western Australia. The company is actively seeking strategic acquisitions and strengthening partnerships to bolster its resilience, competitiveness, and long-term growth prospects. A recent exploration block acquisition offshore Suriname in December 2025 marks a significant step in expanding its international footprint. Additionally, KUFPEC, through Kuwait Petroleum Corporation (KPC), secured a 20-year license extension for the Geisum and West Telem project in Egypt's Gulf of Suez, ensuring continued production and reserve growth.