Kuwait mulls plans to deal with Hormuz closure

Last Updated: Monday, April 9, 2012 - 21:34

Kuwait City: Kuwait is mulling "many
scenarios" in case the strategic Strait of Hormuz is closed,
disrupting its vital oil exports, a top official said Monday.

"We are discussing many scenarios but we have not decided
which" plan to adopt, the CEO of national oil conglomerate
Kuwait Petroleum Corp (KPC), Faruq al-Zanki, said without
revealing specifics.

"This is something that needs to be coordinated with the
(Gulf Cooperation Council) GCC states," Zanki told reporters
on the sidelines of a Gulf Petroleum Conference.

Iran has frequently threatened to close the strategic
strait, through where most Gulf oil exports pass, if it is
militarily attacked over its controversial nuclear programme.

Zanki said KPC has been asked to look into this issue.

"KPC has been asked to look into what we think (it can do
about the possible closure of Hormuz) and this is something we
are looking into," Zanki said.

He said that such contingency scenarios were discussed by
the GCC states in the past and "we need to re-visit it and
come up with a specific plan, agreed by all" states.

He declined to say if the GCC states were currently
engaged in studies over the possible closure of Hormuz.

Kuwait pumps around 3.0 million barrels per day (bpd) and
most of it is exported as crude and refined products through
the Strait of Hormuz.

The United Arab Emirates is currently constructing
pipelines that would allow oil and gas exports to bypass the
strait, at the mouth of the Gulf.

In January, UAE Energy Minister Mohammad bin Dhaen
al-Hameli said a Habshan-Fujairah pipeline, due to be finished
by June, will have the capacity to pump 1.5 million bpd from
fields in Abu Dhabi on the Gulf to Fujairah on the Gulf of
Oman.

The oil-rich country is also working on a gas terminal in
the northern emirate of Fujairah to eliminate the need for gas
tankers to pass through the Hormuz.

PTI



First Published: Monday, April 9, 2012 - 21:34

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