Oil Chiefs Call for Global Cooperation on Iran War Costs

The CEO of Saudi Aramco and his counterpart at Kuwait Petroleum Corp have issued a strong call for global cooperation in managing the financial fallout of the Iran war. Amin Nasser and Sheikh Nawaf Al-Saba emphasized that the conflict has caused extensive damage to energy infrastructure, including pipelines, refineries, and tankers, resulting in billions of dollars in repair and investment costs.

Nasser highlighted the need for shared responsibility, stating that 'Oil and gas infrastructure is not a cost to be minimised or avoid. It is a collective necessity for producers and consumers alike.' He pointed out that even if the war ended today, the world would need an additional 2 million barrels of oil per day for up to two years to replenish depleted stockpiles.

Kuwait Petroleum Corp is in discussions with European partners to invest in storage facilities for refined fuels, as Europe faces severe shortages, particularly in diesel. Sheikh Nawaf stressed that European nations must contribute to these infrastructure investments to ensure a stable supply of Kuwaiti-made fuels.

Aramco is exploring alternative export routes and plans to significantly expand its overseas storage capacity. Nasser cited the East-West pipeline as a successful example of diversifying supply chains to mitigate disruptions in the Strait of Hormuz, noting that the investment in this pipeline paid off quickly once the conflict began.