Kuwait Petroleum expects to reach full capacity in 4 months post-war

Kuwait Petroleum Corporation (KPC) expects to restore production to full capacity in three to four months once the Iran war ends, its CEO has said.

The state-run oil company was “forced” to reduce crude oil production due to disruptions to free navigation in the Strait of Hormuz, the state-run Qatar News Agency reported, quoting Sheikh Nawaf Saud Al-Sabah.

The attacks on oil refineries in Kuwait and the region were “utterly unprovoked and there is no alternative to the Strait of Hormuz”, he said.

Last week, KPC said that the Mina Al-Ahmadi refinery came under drone attacks, resulting in a fire in several units within the refinery.

Kuwait’s Civil Aviation Authority said on Tuesday night that drones had targeted a fuel tank at Kuwait International Airport, causing a fire at the site. 

Targeting oil facilities poses a serious escalation that threatens global energy markets, Al-Sabah said, seeking an end to such attacks whose fallout is impacting the global economy.

Oil supplies and strategic reserves transported through alternative pipelines beyond the Strait of Hormuz do not represent even an iota of normal export flows, the CEO added.

KPC will be able to restore oil production proportionately over the next three to four months, returning to full capacity once the war ends, the CEO said.

Oil prices are down 5 percent on Wednesday following reports that the US has sent a 15-point proposal to Iran to end the war.

Further reading:

• Kuwait’s KPC draws investors to possible $7bn pipeline deal
• IMF sees emerging diversification in Kuwait
• Jazeera Airways restarts flights to six Indian cities