Kuwait boosts oil production amid Hormuz transit risks
Kuwait has restored its oil production to roughly 2 million barrels per day (MMbpd), marking a significant recovery since the outbreak of the Iran war in late February. Sheikh Nawaf Al-Sabah, CEO of Kuwait Petroleum Corp. (KPC), revealed this in an interview, noting that the country's output had previously dropped below 1 MMbpd due to Iran's blockade of the Strait of Hormuz. Despite ongoing threats to shipping in the strait, more tankers are now navigating the waterway, as there is no viable alternative for global oil transit.
Kuwait's refineries remain operational, but the lack of navigation freedom through the Strait of Hormuz has created a shortage of oil products, particularly diesel and jet fuel. Sheikh Nawaf highlighted that Europe's recent emergency release of oil from strategic reserves is partly due to Kuwait's reduced supply of these fuels. KPC is also expanding its tanker fleet, currently consisting of 29 vessels, to better manage cargo shipments.
Despite the war's disruptions, Kuwait's strategic projects are advancing as planned. The country aims to increase its production capacity to 4 MMbpd by 2035, up from the current 3 MMbpd. Additionally, Kuwait is exploring pipeline routes through Saudi Arabia and the UAE to diversify its oil export options.