Kuwait increases oil exports to China
Kuwait will increase the volume of crude oil it exports to China to 500,000 barrels a day (bpd) in three years, and eventually to 800,000 bpd, an executive at the state-run Kuwait Petroleum Corporation has said.
On Friday, Kuwait agreed to a new 10-year deal with a China’s Sinopec Corp to nearly double its supplies by offering to ship the oil and sell it on a more competitive cost-and-freight basis.
“With new and mutual cooperation between the two parties, there is a good sign of increasing the volume of our crude oil exports to China up to 500,000 bpd in the next three years,” Nasser Al-Mudhaf, KPC’s Managing Director of International Marketing told Kuwait’s News Agency.
The new deal includes an arrangement for KPC to initially export 300,000 bpd of crude oil, which would amount to 15 per cent of Kuwaiti petroleum exports and estimated to be worth $120 billion.
“This agreement is one of the most important crude contracts for KPC, and is considered the biggest sales deal by volume and revenues in all regions,” Mudhaf said.
According to Mudhaf, the contract is not related to an ongoing joint project between KPC and Sinopec for the construction of a 300,000 bpd refinery. Feedstock for the plant will be also supplied by KPC when it goes onstream.
“If the joint venture materialises, China-bound shipments may hit 800,000 bpd,” he added.