Saudi Arabia Restores 7 Mbpd Pipeline, South Korea Seals Kazakhstan Oil Deal
Saudi Arabia restored 7 Mbpd capacity of its 1,200 km East-West pipeline and resumed 300 kbpd at Manifa, though Khurais remains shut for 300 kbpd repairs. South Korea is finalizing a Kazakhstan crude oil deal to offset its 70% Middle East import reliance, with volumes due next week.
1. Saudi Pipeline Restoration
Saudi Arabia completed repairs on its 1,200-kilometer East-West pipeline, restoring its full 7 million barrels per day capacity. This move reinforces the kingdom’s strategy to route crude via Red Sea terminals, compensating for disrupted Persian Gulf shipping lanes and stabilizing export volumes.
2. Manifa and Khurais Output Updates
In parallel with the pipeline repairs, output at the offshore Manifa facility returned to 300,000 barrels per day, while the Khurais onshore complex remains offline for repairs of its 300,000 bpd throughput. Full network stability depends on Khurais restoration, which would eliminate remaining bottlenecks.
3. South Korea’s Kazakhstan Diversification
South Korea is finalizing a long-term crude supply agreement with Kazakhstan to reduce its 70% dependence on Middle East imports. The deal’s volumes and logistics details are expected soon, offering a strategic alternative to mitigate Strait of Hormuz transit risks.