Kuwait Petroleum Corp offers ship-to-ship transfers outside Strait of Hormuz for buyers
KPC's deputy managing director confirmed the option of offshore STS operations to ensure safe transportation. The company has resumed cargo offers in June since the war began in February.
Emad A. M. Al-Kandari, deputy managing director of International Marketing at Kuwait Petroleum Corp (KPC), said on Wednesday that the company is offering ship-to-ship transfers outside the Strait of Hormuz to buyers. This service aims to provide safe transportation to final destinations whenever conditions permit. The official stated that some ships currently pass through the Strait of Hormuz, and options for STS operations in other locations are being provided. Al-Kandari did not specify which petroleum products were included in these transfers.
Documents reviewed by Reuters showed KPC recently offered naphtha on a delivered ex-ship basis in tenders during August and September. Market sources indicated some cargoes sold at premiums reaching $60 per ton to Japan quotes on a delivered basis. Prior to the U.S.-Iran war, KPC typically offered naphtha on a free-on-board basis. The company resumed cargo offers in June, marking the first time it had done so since the conflict started in February.
Data from shiptracker Kpler indicated Kuwait exported an average of 200,000 barrels per day of naphtha in the first two months of the year. Those exports dropped to zero in April but have recovered to half of pre-war levels in the last two months.
