Kuwait preparing for long US-Iran disruption, plans to buy more ships

Kuwait Petroleum Corp. is preparing for a prolonged period of trade-flow disruption due to the ongoing US-Iran conflict, according to a company executive at APPEC 2026 in Singapore. KPC plans to bolster its ship fleet to better control its supply, as trade-flow and production disruptions may lead to increased costs and delivery schedule complications.

Managing Director of International Marketing Shaikh Khaled Al-Sabah emphasized that Kuwait will uphold supply commitments to customers in the neighboring region and Northwest Europe. The company is dependent on the Strait of Hormuz for its crude and refined shipments, but traffic via the strait has decreased due to Iranian attacks, resulting in a decrease in Kuwait's crude exports from 1.2 million b/d in February to 375,000 b/d in August.

Kuwait also exports a significant amount of refined products, with exports at 174,000 b/d in August, down from 847,000 b/d in February. KPC has been managing operations through the early phase of the conflict, initially maintaining refinery runs at minimum viable levels and then ramping up efforts as the situation persisted. While alternative rerouting and sourcing can help, they do not eliminate the structural problem, according to Sabah.

To enhance supply resilience, KPC is focusing on acquiring more of its own ships to minimize dependence on external shipping and improve scheduling control. The company is also exploring pipeline options and additional storage to buffer cargoes and maintain sales even when direct loading and routing are disrupted. Ultimately, KPC aims to transition from short-term crisis management to a longer-term operating model, ensuring it can navigate prolonged disruption without losing control of exports and delivery terms.