Key facts
- Kuwait Petroleum Company expects a prolonged recovery for its oil production.
- Restoring 70% of normal production levels will take six to eight weeks after Hormuz reopens.
- The remaining 30% of production will require an additional month to recover.
- This timeline is longer than many traders anticipate.
Kuwait Petroleum Company has indicated that the restoration of its oil production following the potential reopening of the Strait of Hormuz will take considerably longer than many market participants currently assume. Shaikh Khaled Ahmad Al-Sabah, the company's managing director for international marketing, stated at the S&P Global Energy Middle East Petroleum and Gas Conference that Kuwait would require an estimated six to eight weeks to recover approximately 70% of its normal production levels once the strait is operational again. He further elaborated that the remaining 30% of production capacity would necessitate an additional month to be brought back online. This extended timeline suggests significant disruption to Kuwait's oil output and export capabilities.