Kuwait Experts Call for Domestic Oil Boost Before Global Expansion Amid Hormuz Shutdown

Kuwait Experts Call for Domestic Oil Boost Before Global Expansion Amid Hormuz Shutdown

Oil experts recommended that Kuwait boost domestic oil output to 3 million barrels daily before overseas expansion to counter losses from the Strait of Hormuz closure in the US-Israel-Iran conflict, an April 6, 2026 Arab Times report said. Kamel Al-Harami noted current production at 2.6 million barrels per day and the need for budget readiness for foreign investments.

Al-Harami stressed in the report that investing in foreign resources would require billions of dollars and could only proceed if the Kuwait Petroleum Corporation possessed the necessary budget. He advocated reaching the 3-million-barrel domestic target first to strengthen the sector’s foundation against export threats. The expert’s position reflects concerns over the current conflict’s impact on energy flows through the strait which the International Energy Agency data places at nearly 21 million barrels per day in 2025 or about 20 percent of global petroleum liquids consumption.

According to the Arab Times Dr. Abdullah Al-Kandari supported KPC’s pursuit of overseas oil and gas exploration to diversify its income streams under the prevailing conditions. The expert noted that Kuwait maintains three companies active abroad with the Kuwait Gulf Oil Company overseeing joint operations at the Khafji and Wafra fields in the neutral zone with Saudi Arabia the Kuwait Foreign Petroleum Exploration Company and Kuwait Petroleum International. Al-Kandari highlighted KUFPEC’s transition to profitability in recent years as an example of the patience required for international projects that now span India China Pakistan Australia Vietnam Oman Egypt and Italy.

A KPC official report cited by the newspaper detailed significant efforts to improve operational efficiency in both exploration and international oil projects. It indicated that last year’s average daily production of exportable gas stood at 14.64 million standard cubic feet with natural gas liquids at 4,190 barrels and crude oil output from the divided zone reaching 128,000 barrels. Daily rates at Wafra rose to 77,520 barrels alongside shipments of 22 million cubic feet of associated gas to the Kuwait Oil Company.

The report further outlined KUFPEC’s global achievements including revenues of $1.47 billion and net profits of $737 million with projects across five continents. Recent successes encompassed a new oil well discovery in Egypt’s Gulf of Suez concession and the securing of two blocks in Indonesia’s South Sumatra region. In Canada the Kaybob-Duvernay shale project saw production climb from 750 to 25,927 barrels of oil equivalent per day by year-end.

International Energy Agency assessments found that Kuwait and fellow Gulf producers depend on the Strait of Hormuz for the bulk of their oil exports making the ongoing closure particularly disruptive. US Energy Information Administration estimates for 2025 placed total oil flows through the waterway at 20.9 million barrels daily equivalent to one-quarter of global maritime traded oil. This vulnerability has prompted the calls for both domestic enhancement and measured international expansion.

KUFPEC increased production capacity in Australia during the pilot phase resulting in a 7 percent rise at the local gas plant to 210 million standard cubic feet per day the KPC document showed. The Nghi Son refinery project in Vietnam operated at 120 percent of design capacity while fulfilling petroleum product agreements for low-sulfur diesel distribution. Cost savings of $41.1 million were realized at the Duqm Refinery in Oman through various quality initiatives implemented with the local OQ Group as of March 2025.

The Milazzo Refinery in Italy achieved four consecutive years without accidents through May 2025 according to the report underscoring its robust safety culture and operational model. Upgrades to the vacuum unit now allow processing of sour crude oils thereby boosting flexibility and the range of crude types it can handle. These accomplishments across KPC’s international portfolio demonstrate the tangible benefits of the diversification strategy advocated by the Kuwaiti experts.