Kuwait Petroleum News

Producers in the Middle East have asked Asian refiners to submit crude oil loading programmes for April and May in preparation for the eventual resumption of shipping through the Strait of Hormuz, three sources with knowledge of the matter said.A two-week ceasefire deal between the U.S. and Iran announced on Wednesday lifted hopes for a reopening of the Strait, through which about 20% of global oil and liquefied natural gas (LNG) supplies travelled before the war.But there has been no sign yet of Tehran lifting its near-total blockade of the critical waterway…

The Iran war has threatened Gulf ports and disrupted global trade through the Strait of Hormuz, a vital waterway through which roughly a fifth of the world's oil and liquefied natural gas normally passes.Iran's Revolutionary Guards have warned that ships passing through the narrow Strait will be targeted, after the U.S. and Israel launched strikes on the country on February 28.Below is a list of reported attacks:MARCH 1A crew member was killed on board Marshall Islands-flagged crude tanker MKD VYOM after it was hit by a projectile as the vessel sailed off the Omani coast…

Tehran attacked and set ablaze a fully loaded crude oil tanker off Dubai on Tuesday, despite a threat by President Donald Trump that the U.S. will obliterate Iran's energy plants if it does not agree to a peace deal and open the Strait of Hormuz.Authorities in Dubai said the fire on the Kuwait-flagged Al-Salmi had been brought under control following a drone attack, with no oil leak and no injuries to the crew. Kuwait Petroleum Corp, the ship's owner, said the vessel's hull was damaged.The attack was the latest on merchant vessels in the strait…

Iran attacked a fully-loaded crude oil tanker at Dubai Port's anchorage on Monday, setting it ablaze and damaging its hull, Kuwait's state news agency reported, citing Kuwait Petroleum Corp, which warned of a possible oil spill.The apparent strike is just the latest in a string of assaults on merchant vessels by missiles or explosive air and sea drones in the Gulf and Strait of Hormuz since the U.S. and Israel attacked Iran on February 28.U.S. crude futures CLc1 rose more than…

Energy prices surged on Thursday after Iran struck the world’s largest LNG complex, causing damage that Qatar said could take five years to repair, as the energy sector's worst fears about the war launched by the U.S. and Israel on Iran came true.QatarEnergy CEO Saad al-Kaabi told Reuters the state-owned gas company may have to declare force majeure on long-term contracts to Italy, Belgium, South Korea and China after the attack meant a loss of around 17% of Qatar's liquefied…

Governments scrambled to limit the impact on economies and consumers from the widening Iran war, which fuelled a record surge in oil prices on Monday after key producers cut output and Tehran signalled that hardliners would remain in charge.In a sign of mounting governmental concern over supply disruptions, the Group of Seven finance ministers will discuss the possibility of a joint release of emergency oil reserves in a meeting on Monday, a French government source said.In South Korea…

Kuwait Petroleum Corporation began cutting oil output on Saturday and declared force majeure, adding to earlier oil and gas reductions from Iraq and Qatar as the U.S.-Iran war blocked shipments from the Middle East for the eighth consecutive day.The war has blocked the world's most important oil artery the Strait of Hormuz which is responsible for 20% of global oil and LNG supply. Analysts predict the United Arab Emirates and Saudi Arabia will have to also cut output soon as they run out of oil storage.Kuwait Petroleum Corporation (KPC) declared force majeure…

The U.S.-Israeli war on Iran has disrupted oil and natural gas exports from the Middle East and forced production stoppages from Qatar to Iraq, with Kuwait announcing cuts over the weekend.Analysts predict that the United Arab Emirates and Saudi Arabia will also have to cut output soon as they run out of oil storage.Below are the main energy disruptions so far:PRODUCTION SHUTDOWNSIraqi output collapses: the country's oil production from its main southern oilfields has fallen by 70% to just 1.3 million barrels per day (bpd) from 4.3 million barrels per day (bpd) before the war…

Kuwait Oil Company is in talks with some U.S. firms including Devon Energy and EOG on potential cooperation to develop its shale oil and gas resources, its CEO said on Thursday.KOC is "engaging with some U.S. operators to explore how their expertise can support the development of Kuwait’s shale oil and shale gas resources", Ahmad Al-Eidan said on the sidelines of the Kuwait Oil & Gas Show.This would be the first time Kuwait has sought to develop its shale oil and shale gas resources…

Esgian provides an update on new drilling plans in Guyana and Norway in its Week 29 Rig Analytics Market Roundup.Report SummaryContractsADES has secured a 10-year contract extension for 250-ft jackup Admarine 657 offshore Saudi Arabia, commencing immediately upon the expiration of its current contract term with Saudi Aramco in the third quarter of 2024.Market sources indicate that Arabian Drilling 250-ft jackup ArabDrill 80 has secured a one-year extension with Al Khafji.Diamond Offshore has secured a contract with Beacon Offshore Energy subsidiary BOE Exploration & Production LLC for 12…

Global Energy Storage, a new company that aims to store products such as hydrogen and biofuels, said on Thursday it is buying assets in Rotterdam from commodities firm Gunvor Group and will redevelop 20 hectares (49 acres) of land in the port for its operations.Financial details of the purchase, which includes part of Gunvor's Stargate Oil Terminal, were not disclosed.The company's plan is to "take an existing oil terminal and develop it into a state-of-the-art low-carbon products terminal…

A fully loaded oil tanker has caught fire off the east coast of Sri Lanka, which has dispatched an aircraft and two navy ships to help in the rescue, a Sri Lankan navy spokesman said on Thursday.The New Diamond, a very large crude carrier (VLCC) chartered by Indian Oil Corp (IOC), was heading to the port of Paradip in India, where the state-run firm operates a 300,000 barrel-per-day refinery.The ship had sailed from the port of Mina Al Ahmadi in Kuwait, carrying Kuwait Export Crude, Refinitiv Eikon ship tracking data showed.The Sri Lankan spokesman, Commander Ranjith Rajapaksa, said the VLCC was ablaze about 20 nautical miles off the east coast.

Technology group Wärtsilä said it has been contracted to upgrade four vessels owned by Kuwait Oil Tanker Company (KOTC), a subsidiary of Kuwait Petroleum Company (KPC), by retrofitting the Wärtsilä Fuel Efficiency Boost solution to the ships’ main engines. The modification will reduce fuel consumption, and correspondingly lessen the environmental impact by lowering greenhouse gas emission levels.Wärtsilä said its Fuel Efficiency Boost initiative has attracted considerable interest…

Kuwait Oil Tanker Company (KOTC) said that it received the giant liquefied natural gas (LNG) tanker, Umm Ruwaisat, as part of a major fleet overhaul.Accoding to Kuwait News Agency (KUNA), KOTC has entered the fourth phase of its fleet overhaul, which entails the delivery of eight carriers, three of which are gas tankers built by South Korean ship building firm Hyundai MIPO.The fourth phase of the fleet development includes the delivery of eight tankers of which three are giant LNG tankers built by Korea’s Hyundai Heavy Industries Co, in addition to four medium-term oil products tankers and a huge crude oil tanker currently being built in a Chinese firm.

The world’s largest liquefied natural gas (LNG) producer Qatargas has signed a new, long-term LNG sale and purchase agreement (SPA) with Shell to deliver 1 million tons per annum of LNG to Kuwait, commencing this year.Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs said, “We are pleased to announce this new long term agreement between Qatargas and Shell for the supply of LNG to the State of Kuwait, following the recent agreement signed between Qatar Petroleum and Kuwait Petroleum Corporation. These agreements demonstrate our commitment to the State of Kuwait, which is a very important LNG market and is part of our strive to be the LNG supplier of choice for our customers."Al-Kaabi said: "I would like to take this opportunity to thank our valued partner…

State-owned Kuwait Petroleum Corp signed a 15-year agreement with Qatar Petroleum to import three million tonnes of liquefied natural gas (LNG) each year starting from 2022.The agreement was signed by Dr. Khaled A. Al-Fadhel, the Minister of Oil and the Minister of Electricity & Water, the Chairman of the Board of Kuwait Petroleum Corporation and His Excellency Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of Qatar Petroleum, during a special ceremony held in Kuwait City.Under the 15-year agreement, LNG deliveries to Kuwait’s new world-class LNG receiving terminal at Al-Zour Port will commence in 2022 to support meeting Kuwait’s growing energy needs and demand…

Dubai-based subsidiary of Lukoil, Lukoil Marine Lubricants has reached a renewal agreement with Kuwait Oil Tanker Company (KOTC), a unit of of Kuwait Petroleum Corporation (KPC), for the supply of marine lubricants.For the past three years, Lukoil has supplied KOTC’s full fleet of tanker vessels with its specialized product of marine lubricants. The new deal between the two companies will help to build upon the existing foundation of an already solid business working relationship.As per the contract terms, Lukoil will supply KOTC’s 24-strong fleet consisting of Very Large Crude Carriers (VLCC’s), Product Carriers, Liquefied Petroleum Gas (LPG) Carriers…

Kuwait Oil Tanker Co. (KOTC), a subsidiary of Kuwait Petroleum Corporation, has ordered three giant liquefied petroleum gas tankers (LPG) from Hyundai Heavy Industries (HHI), the South Korean shipbuilding giant.According to the government's media outlet Kuwait New Agency (KUNA), the order for very large gas carrier (VLGC) is worth KD 64.8 million (around USD 213.3 million).KUNA quoted CEO of KOTC Sheikh Talal Al-Khaled Al-Sabah as saying that the VLGC-LPG gas tankers are part of a tanker-building contract signed with HHI, which includes the building and delivery of three giant gas carriers.Each tanker can carry around 84,000 cubic meters…

Oman Shipping Company (OSC) is reporting strong performance in domestic markets following long-term deals with local refineries and traders including ORPIC and OTI.OSC’s growth in the region is being driven by a 20-year contract to transport condensate for ORPIC (Oman Oil Refineries and Petroleum Industries Company) and a 15-year deal transporting methanol for OTI (Oman Trading International) from Salalah Methanol plant.The company is further supporting the export of LPG from Sohar Refinery to Yemen, Sudan, India, Bangladesh and Sri Lanka.

Global energy trader Gunvor Group has put on hold plans to upgrade its Rotterdam refinery that intended to make the plant more competitive ahead of new global rules on shipping fuel quality, it said on Tuesday, citing market conditions.Global oil and shipping companies are looking at options to cope with the new standards that come into effect in 2020.The U.N. International Maritime Organization (IMO) will ban ships using fuel with a sulphur content higher than 0.5 percent, compared to 3.5 percent now…

Kuwait Petroleum Corp. (KPC) has signed a 15-year liquefied natural gas import deal with Royal Dutch Shell Plc to help the oil exporting nation meet growing domestic energy demand. A report in Bloomberg said that the sales purchasing agreement with Shell International Trading Middle East Ltd. will start in 2020. The contract will cover 2 million to 3 million metric tons of LNG a year. The volumes delivered under the contract will be used to fire up KPC’s power stations. A press release said that Kuwait wants cleaner burning energy sources such as natural gas to reduce emissions and improve air quality. The deal would “provide fuel to power stations in Kuwait,” KPC said in the statement but did not disclose the value of the deal or the volumes that will be supplied.

Russia-based energy company Gazprom has negotiated about supplies of liquefied natural gas (LNG)  to Kuwait, reports Tass. The talks continue in "a rather progressive mood,"during the the Energy Minister Alexander Novak’s visit to the Middle East country, the report said. However, it is too early yet to speak about finalizing them. Though Kuwait is satisfied with LNG supplies from Qatar, the parties continued the discussion on a long-term contract. Kuwait is building a new LNG terminal, which should be ready by 2020. Two years ago, Gazprom signed a memorandum of understanding to co-operate in LNG with Kuwait Petroleum Corp (KPC), part of a wider deal between the two countries to forge closer ties in investment, technical and research matters.

Asian spot LNG prices fell this week on poor demand from major gas-consuming regions despite a slew of new purchase tenders. The May spot LNG contract fell by $0.25 cents to $5.40 per million British thermal units (mmBtu), with new production coming on stream in Australia and the United States. Analysts and traders mainly blamed low demand for driving prices lower. In the Middle East, Abu Dhabi was staying on the sidelines of the market and new solar power capacity in Dubai was eroding gas demand there.