Kuwait is cranking up crude processing at its three refineries with heavy grades of oil to maximize exports of more profitable lighter crude.
The refineries currently process 1.4 million barrels of crude daily and expect to raise rates to 1.6 million barrels “soon,” Kuwait Petroleum Corp.’s chief, Sheikh Nawaf Al-Sabah, said Tuesday in an interview during the CERAWeek by S&P Global conference. The processing increase comes as the nation committed to cutting oil output by 135,000 barrels a day in coordination with some OPEC+ members, cutting the total amount of crude Kuwait is able to export.
Kuwait’s Al-Zour refinery is one of the largest in the Middle East, able to process heavy and sour varieties with a full capacity of 615,000 barrels a day.
“Al-Zour is running as much heavy oil as possible,” Sheikh Nawaf said in Houston. “What we are trying to do is maximize as much heavy oil into that refinery as possible since they get a lower netback in the market,” he said. that means the company can maximize Kuwait Export Crude — a medium grade that fetches a higher price,
Saudi Arabia, Russia, Kuwait and other nations have agreed to extend production cuts of roughly 2 million barrels a day of oil through June in a bid to avert a global surplus and support oil prices.
