Updated 7 March 2026 at 23:19 IST
Kuwait Petroleum Corp Invokes Force Majeure Citing 'Iranian Threat' | Here's What It Means
KPC announced in a post on X, that it has “implemented a precautionary reduction in crude oil production and refining throughput as part of its risk management and business continuity strategy.”
New Delhi: In light of the ongoing war in the Middle East, another major oil giant in the region has now declared a 'force majeure' on oil sales. This time it is Kuwait Petroleum Corp (KPC). Earlier this week, Qatar, which is one of the world’s largest liquefied natural gas (LNG) exporters, halted its operation at the Ras Laffan facility when it came under an Iranian drone strike.
On Saturday, KPC announced in a post on X, that it has “implemented a precautionary reduction in crude oil production and refining throughput as part of its risk management and business continuity strategy.”
It said that the company has implemented a “precautionary reduction in crude oil production and refining throughput as part of its risk management and business continuity strategy.”
In this context let us explore what the “force majeure” clause stands for and why is it being invoked now.
What is Force Majeure?
The force majeure clause is a key provision that exists in any business contract that either partiers can invoke if they are not able to meet their obligations to one another owing to an extraordinary event. These usually cover unprecedented events like war, natural disasters or government action.
Why Is Force Majeure Being Invoked now?
Indian energy companies have largely invoked the force majeure clause citing the ongoing US-Israel war with Iran, reasonging that shipping through the Strait of Hormuz has been disrupted due to the tensions in West Asia.
The Strait of Hormuz is a narrow passage located between Iran and Oman, that handles a significant share of global oil and gas trade.
Recently India’s largest LNG importer, Petronet LNG, invoked the force majeure notice to QatarEnergy saying that the ongoing security situation would pose a major threat to its LNG tankers, Disha, Raahi and Aseem.
According to Reuters, Mangalore Refinery and Petrochemicals also declared force majeure on gasoline export for the months of March and April, owing to disruption to crude imports from the Gulf.
Gujarat Gas had also mentioned that it would invoke this clause owing to constraints in the availability of regasified LNG. It mentioned that "acts of war" are not covered by insurance.
When Was the Force Majeure Clause Invoked Earlier?
The force majeure clause was previously invoked during the Covid-19 pandemic, and even during the Russia-Ukraine war.
Published By : Satyaki Baidya
Published On: 7 March 2026 at 23:18 IST