Kuwait Foreign Petroleum Exploration Company (KUFPEC) is reportedly exploring oil and gas opportunities in Indonesia's Natuna Sea, according to a report by Reuters.

This aligns with Indonesian President Prabowo Subianto's strategy to enhance the nation's production and reduce reliance on imported fuel.

KUFPEC already holds interests in Natuna Block A, supplying gas to Singapore, and the Anambas Block, pending development approval.

KUFPEC Indonesian country manager Sara Al-Baker said: "We are particularly focused on potential blocks in the Natuna Sea region, which aligns with our ongoing efforts to develop the Anambas Block," the report stated.  

Al-Baker highlighted KUFPEC's focus on potential blocks in the Natuna Sea in line with its Anambas Block development efforts.

A study is being conducted by the company at the Natuna D-Alpha gas block, which holds an estimated 230tcf of gas resources.

Al-Baker said: "At this stage, we are conducting a joint study and conducting our evaluation, it will depend on the result. I think it is a very strategic project for Indonesia. The main challenge is the high CO₂."

KUFPEC is also involved in consortia exploring the Melati and Amanah blocks. Al-Baker acknowledged the Indonesian Government's commitment to offering attractive contract terms, allowing companies to choose between the cost recovery model or a gross split scheme, the report stated.

Recent gas discoveries in the South Andaman and offshore Kalimantan have further sparked investor interest.

Al-Baker stated: "This combination of untapped potential and supportive government initiatives strengthens Indonesia's position as a prominent destination for oil and gas exploration."

Indonesia, once an OPEC member, is now a net oil importer due to ageing wells and investment challenges including competition from renewables.

Indonesia’s Ministry of Energy recently announced the signing of a contract with Harbour Energy and Mubadala Energy for the development of the Central Andaman oil and gas block.

This project, located offshore northern Sumatra, marks a key milestone as it is the first to use Indonesia’s new gross split scheme, aimed at streamlining the contracting process for energy projects.

The Central Andaman block holds significant resources, with an estimated 100 million barrels of oil and 500 billion cubic feet of gas, based on the Ministry's data.