Kuwait Boosts Oil Production to 2 MMbpd as Hormuz Traffic Rises

Kuwait has restored its oil production to approximately 2 million barrels per day (MMbpd), marking a significant recovery since the onset of the Iran war. This level represents about 75% of the country's pre-conflict output, which stood at 2.6 MMbpd before hostilities began in late February. The revival in production comes as more tankers are navigating the Strait of Hormuz despite ongoing threats from Iran.

Sheikh Nawaf Al-Sabah, CEO of Kuwait Petroleum Corp. (KPC), attributed the increase in tanker traffic to the Strait of Hormuz's indispensable role in international commerce. 'More ships are getting through because people recognize there’s no alternative to the Strait of Hormuz,' he said. Despite continued attacks on vessels in the waterway, Middle Eastern producers like Kuwait, the United Arab Emirates, and Saudi Arabia are gradually restoring prewar levels of oil shipments.

KPC is fulfilling its crude oil obligations to customers, though Sheikh Nawaf highlighted a global shortage of oil products, with strategic inventories at 'critical levels.' He noted that Europe's recent emergency release of diesel and jet fuel reserves was partly due to Kuwait's reduced supply capacity, exacerbated by navigation challenges in the Strait of Hormuz. The country's refineries remain operational, but the lack of safe passage is a major constraint.

Looking ahead, KPC is expanding its tanker fleet from 29 vessels to enhance operational flexibility. Sheikh Nawaf also affirmed that Kuwait's strategic projects, including plans to increase production capacity to 4 MMbpd by 2035, are proceeding on schedule. Alternative pipeline routes through Saudi Arabia and the UAE are under consideration to mitigate risks associated with the Strait of Hormuz.