State-backed Kuwait Foreign Petroleum Exploration Co. (Kufpec) made its first foray into North America on Monday, inking a $1.5 billion joint venture with Chevron in Western Canada's Duvernay Shale. The partnership will see Kufpec take a 30% stake in Chevron's 330,000 net acres in the Kaybob area of the Duvernay, a liquids-rich gas play in west-central Alberta. In exchange, Kuwait's international arm will pay $1.5 billion in a mix of upfront cash and a partial carry of Chevron's future drilling costs. "Kufpec is delivering on its strategic targets," Chief Executive Shaikh Nawaf al-Sabah said of the deal. "This project will provide diversified, material, long-life reserves, production and upside in a low-risk business environment, with strong and stable cash flows for decades to come."
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