Kuwait has raised its oil production to 2 million barrels per day (MMbpd), which is equivalent to 75% of its production capacity before the onset of the war with Iran in late February. Sheikh Nawaf Al Sabah, CEO of Kuwait Petroleum Corp, stated in an interview that the country's oil production has improved compared to the time when the crisis began, when production had dropped to less than 1 million barrels per day.
Increase in Tanker Passage Through the Strait of Hormuz
Sheikh Nawaf emphasized that despite Iranian threats to shipping in the Strait of Hormuz, more tankers have accepted the risk of passing through this waterway. He said: "More ships are passing through because people know there is no alternative to the Strait of Hormuz." This strait is considered a vital route for international trade, and all efforts to build pipelines and storage facilities cannot compensate for its importance.
Read more: The Acting Minister of Oil Continues Development and Production Plans
Existing Fuel Supply Issues
Sheikh Nawaf also pointed to a shortage of petroleum products in the global market, stating that strategic inventories are at critical levels. He added: "Why is Europe currently releasing emergency diesel and jet fuel? Because of Kuwait." This refers to the recent announcement about the release of oil from strategic reserves. Before the war, this country was one of the major suppliers of these fuels in the region.
All of Kuwait's refineries that produce these fuels are currently active and efficient, but the main problem is the lack of navigational freedom in the Strait of Hormuz. Sheikh Nawaf also reported an increased willingness among Kuwaiti customers to send tankers to the country to receive shipments, stating that Kuwait Petroleum Corp is expanding its fleet of tankers, which currently includes 29 vessels.
He added: "We have found that having a strategic tanker fleet that belongs to us is more beneficial." Despite disruptions caused by the war, Kuwait's strategic projects are progressing as planned, and Sheikh Nawaf emphasized that his country aims to increase oil production capacity to 4 million barrels per day by 2035, which is currently at 3 million barrels per day.
Kuwait is also advancing its plans to build pipelines with options including routes passing through Saudi Arabia and the United Arab Emirates.
Read more: Saudi Arabia Reduced Asian Crude Oil Prices and Increased European Rates · Increase in Middle Eastern Oil Exports and Its Impact on the Situation in Iran
