Kuwait Petroleum Corp offers ship‑to‑ship transfers outside Hormuz
Kuwait Petroleum Corp (KPC) will conduct ship‑to‑ship (STS) oil transfers beyond the Strait of Hormuz, providing buyers a safer route amid regional tensions.
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Desk Analysis
How This Affects the Exchange
Sector Effect
Positive · Buy bias
Oil & Gas sector benefits from safer transfer options, creating a buy bias for related Pakistani oil stocks.
Sectors & Direction
Desk read
Desk call: Buy bias · Positively affected
- Oil & GasPositively affected
Companies
Companies Mentioned
- OGDC· Positively affected · Buy bias
Mentions in This Briefing
Sectors: Oil & Gas — Positive · Buy bias. PSX tickers: OGDC. Oil & Gas sector benefits from safer transfer options, creating a buy bias for related Pakistani oil stocks.
Full Story
Open on Business Recorder## KPC announces alternative transfer route
Kuwait Petroleum Corp disclosed at the APPEC industry conference that it is now offering ship‑to‑ship (STS) transfers for its petroleum cargoes outside the Strait of Hormuz. Deputy Managing Director of International Marketing Emad A. M. Al‑Kandari said the company will continue to route vessels through Hormuz when conditions permit, but will also give customers the option of off‑Hormuz STS operations for added safety.
## Products and recent tender activity
While Al‑Kandari did not specify which grades are covered, KPC has recently tendered naphtha on a delivered‑ex‑ship basis in August and September. Market sources reported that some of these cargoes fetched premiums of up to $60 per ton for Japanese buyers.
## Export trends amid the U.S.–Iran conflict
Before the February 2024 U.S.–Iran confrontation, KPC typically sold naphtha on a free‑on‑board (FOB) basis. The company resumed cargo offers in June, marking the first shipments since the war began. Export data from ship‑tracker Kpler shows KPC moved roughly 200,000 barrels per day of naphtha in the first two months of the year, fell to zero in April, and has since recovered to about half of pre‑war volumes.
## Implications for regional oil trade
By providing off‑Hormuz STS options, KPC aims to mitigate transit risks that could disrupt supply chains. The move may help stabilise regional oil flows and support buyers seeking reliable delivery routes, potentially easing price pressures for downstream markets.