KPC reorganizes legality of its contracts under ‘force majeure’ clause
The Kuwait Petroleum Corporation has declared force majeure on shipments of oil and refined products due to the closure of the Strait of Hormuz.
Bloomberg News reported that the Kuwait Petroleum Corporation (KPC) has notified its customers that it would activate the contractual clause that allows the supplier to disregard delivery dates, clarifying that Kuwait’s announcement of this step does not mean a complete halt to supplies.
Informed sources told Al-Rai that this step comes within the framework of the KPC’s reorganization of the legality of its contracts for oil and refined product shipments, noting that based on this announcement, Kuwait’s oil contracts are legal towards customers and international markets, whether the Strait of Hormuz is opened or remains closed.
