Kuwait to increase oil output and cancel force majeure

Kuwait is increasing oil production as an interim US-Iran peace deal begins a reopening of the Strait of Hormuz.

Kuwait Petroleum Corporation aims to ramp up production to 2 million barrels per day within a week, coinciding with the unblocking of the waterway, state-owned Kuna news agency reported, quoting KPC CEO Sheikh Nawaf Saud Al-Sabah.

He said the company will immediately lift force majeure notices, as it gradually returns to normal operations.

Earlier this month, KPC managing director Shaikh Khaled Ahmad Al-Sabah said Kuwait could return to its pre-war oil production within three months once the strait reopens.

Before Washington and Tehran agreed to a ceasefire on April 8, Kuwaiti oil facilities had been targeted by Iran multiple times, including attacks on the Mina Abdullah and Mina Al-Ahmadi refineries.

Analysts estimate it could take years to repair the Mina Al-Ahmadi site, but KPC said Kuwait could return to full refining capacity within two to three weeks.

Kuwait pumped about 2.7 million barrels of crude per day in February, before the conflict began. Output fell to around 1.2 million barrels a day in March.

US President Donald Trump announced a peace agreement this week with Iran, leading to steep falls in oil prices.

Brent crude futures fell 0.54 percent to $79.42 a barrel and West Texas Intermediate declined 0.22 percent to $76.43 a barrel in early Friday trade.

KPC shortlisted several global companies earlier this month to raise $7.5 billion by selling a stake in its pipeline business.

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