Kuwait to Lift Oil Output to 2 Million BPD
Kuwait Speeds Oil Output Recovery After Hormuz Reopens
Kuwait is poised to dramatically ramp up its oil production, aiming to reach 2 million barrels per day (bpd) within a week following a historic agreement between the United States and Iran that has led to the reopening of the Strait of Hormuz. The move marks the beginning of a rapid recovery for one of the Gulf's energy giants after months of severe output suppression caused by regional conflict.
Sheikh Nawaf Al Sabah, Chief Executive of the Kuwait Petroleum Corporation (KPC) and deputy chairman of the state-owned firm, confirmed on Thursday that essential repairs to war-damaged infrastructure are complete. These efforts have allowed Kuwait to regain production capacity faster than initially forecasted. "Prewar production levels could be restored within weeks once regular international commercial shipping to Kuwait ports has resumed," Al Sabah stated, according to the Kuwait News Agency.
The resurgence comes after a devastating decline in output driven by the closure of the strategic waterway. Data from Opec indicates that Kuwait's oil production collapsed by 55 percent to 1.16 million bpd in March as tensions escalated. By May, with the Strait effectively blocked by the ongoing war, output plummeted further to just 573,000 bpd. Unlike its neighbors Saudi Arabia and the UAE, which possess extensive East-West pipelines bypassing the strait, Kuwait lacks such alternative export routes, making it uniquely vulnerable to disruptions in the Hormuz chokepoint.
With the recent diplomatic breakthrough, KPC is actively lifting force majeure notices that were issued during the conflict to facilitate a phased return to normal operations. In a signal of this recovery, the corporation has already launched a tender offering two million barrels of Kuwait Export Crude for July delivery. This follows last week's sale of four million barrels for June delivery, suggesting a steady increase in market supply.
However, the road to full recovery involves more than just restarting pumps. The conflict took a heavy toll on Kuwait's physical assets; the Mina Al Ahmadi refinery, with a capacity of 346,000 bpd, suffered multiple drone attacks causing significant fires and operational downtime. While immediate repairs have cleared the path for a short-term surge, Sheikh Nawaf highlighted long-term strategic shifts necessary to prevent future bottlenecks.
Speaking at an energy conference in Washington this month, Al Sabah emphasized the need for collective action among Gulf Cooperation Council (GCC) states. "It's tough for us to change our geography," he noted, adding that Kuwait is currently in active discussions with Saudi Arabia and the UAE to expand existing pipeline systems. Such expansions would allow Kuwaiti crude to flow through neighboring countries to the Red Sea or the Gulf of Oman, circumventing the Strait of Hormuz entirely.
This strategic pivot mirrors the infrastructure advantages held by Saudi Arabia, which utilizes its Abqaiq-to-Yanbu pipeline, and the UAE, which recently announced plans to double its export capacity via a new pipeline to Fujairah. As Kuwait moves to lift output to 2 million bpd this week, the nation is signaling not only a return to pre-war volumes but also a commitment to reshaping its export security in a post-conflict Middle East.
International oil companies are expected to play a pivotal role in this expansion, with Kuwait reportedly preparing to invite foreign investment to accelerate these infrastructure developments and ensure sustained production growth beyond the immediate crisis resolution.