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State-owned upstream operator Kuwait Oil Company (KOC) is operating with just 30% of its total workforce in their normal workplaces, according to industry sources.

The policy is similar to one that was used during the Covid-19 pandemic and has been implemented as a precaution due to the US and Israel’s conflict with Iran.

The policy does not apply to staff that are working in what are considered to be essential positions, sources said.

“Effectively, what this means is that if you work in a building that is normally staffed by one person, only one person will be in that building at any time,” said one source.

“KOC is rotating the staff so fewer people are in the workplace. Senior executives believe that this is a sensible policy given the current security situation.”

State-owned Kuwait Petroleum Corporation (KPC), KOC’s parent company, recently announced that it had started reducing crude oil production and refining throughput.

It said that it had declared force majeure “in light of the ongoing aggression by Iran against the State of Kuwait, including Iranian threats against safe passage of ships through the Strait of Hormuz”.

Force majeure, a French term meaning “superior force”, is a clause included in many international commercial contracts. It allows companies to suspend contractual obligations when extraordinary events happen that are beyond their control.

KPC said the reduction in production and refining is precautionary and will be reviewed as the situation develops.