24/03/2026
Share:
24/03/2026
Share:
KUWAIT CITY, March 24: The possibility of the Kuwait Petroleum Corporation (KPC) amending the terms of its crude oil and refined product sales contracts with China, India and Asian markets in general to allow transportation via tankers from these countries has become a point of discussion. This comes amid heightened attention to maritime developments, as ship tracking platforms showed Iran allowing two tankers bound for India, carrying liquefied petroleum gas (LPG), to pass through the Strait of Hormuz.
According to the tracking data, these tankers loaded fuel in the United Arab Emirates (UAE) and Kuwait, in addition to another previous instance in which two Indian-registered LPG tankers were permitted to pass through the strait. The passage of these two vessels is being viewed as a potential early indication of a partial easing of tanker congestion in the Strait of Hormuz. Hajjaj Boukhadour, a former official at the Arab Shipping Company and an oil analyst, stated in an exclusive interview with the newspaper that Iran’s decision to allow two Indian tankers to pass through the Strait of Hormuz, despite ongoing congestion, signals the beginning of a resolution to the shipping bottleneck that has affected the strait since the outbreak of war at the end of last month.
He explained that a broader resolution allowing the passage of all vessels is likely to materialize sooner or later, pointing out that the two tankers bound for India were among those that had remained stranded for an extended period. He said the Kuwaiti oil and petroleum product export contracts are typically structured in one of two ways. “The first involves delivering oil at Kuwaiti ports, with the importing party assuming responsibility for transportation to its destination,” he disclosed. He added that most oil sales contracts follow this model, as buyers generally seek the most cost-effective arrangements.
He stated that this mechanism has historically enabled clients of KPC to charter oil tankers from various countries. Regarding the second option, Boukhadour revealed that Kuwaiti crude oil and its derivatives may be shipped from the ports of Ahmadi or Shuaiba to the importer’s destination using Kuwaiti tankers or vessels chartered by KPC when necessary. “In such cases, KPC is not obligated to ensure delivery to the importer’s port, and contracts do not require transportation exclusively via Kuwaiti tankers,” he elaborated. He expects that tankers carrying Kuwaiti oil and gas, particularly those owned by importing countries, will be permitted to transit through the strait.
He was quick to add though that the existing contracts for the sale of Kuwaiti oil are unlikely to be amended, especially given their long-term nature. In a related development, India announced plans to resume imports of Iranian oil, while several Asian refineries have shown interest in purchasing Iranian crude after the United States temporarily eased sanctions on Iranian oil imports for 30 days to mitigate the energy crisis stemming from the ongoing American-Israeli confl with Iran.
By Najeh Bilal Al-Seyassah/Arab Times Staff
