Nawaf Al-Saud: Freedom of navigation in the Strait of Hormuz is irreplaceable

Kuwait National Petroleum Company (KNPC) CEO Sheikh Nawaf Al-Saud affirmed that pipelines and oil reserves cannot substitute for ensuring freedom of navigation through the Strait of Hormuz, noting that Kuwait’s current oil production stands at approximately 2 million barrels per day, down from about 2.6 million barrels per day before the war erupted.

Al-Saud stated that the company continues to employ ship-to-ship transfer operations despite ongoing attacks, leveraging its strategic fleet of tankers. He explained that some clients are using their own tankers to access the Gulf region, and more are expected to follow suit.

He added that the company does not offer discounts or insurance to clients who bring their own tankers to the Gulf area, pointing out an oversupply of crude oil in markets alongside a shortage of refined products.

He noted that the market is losing approximately 6 million barrels per day of refined products, emphasizing the need to focus on exporting refined products from the Gulf region to alleviate bottlenecks at local refineries.

Al-Saud clarified that the company is holding talks with Saudi Arabia and the United Arab Emirates regarding pipelines connecting to ports in both countries, while also considering increasing storage capacity locally and at its three refineries abroad.

He indicated that the company is also in discussions with its European partners to provide logistical services, including the storage of refined petroleum products, confirming that the company directly owns its tankers and is not facing crew shortages in its fleet.

Al-Saud reaffirmed that KNPC is on track to achieve its goal of reaching a crude oil production capacity of 4 million barrels per day by 2035.