KPC and Sinopec enter a 10-year crude oil supply deal

barrel-professorofdeath-flickrKuwait's crude oil exports to China stood at 3.87mn tonnes in the first half of 2014. (Image source: ProfessorofDeath/Flickr) Kuwait Petroleum Corporation (KPC) signs 10-year deal with China’s Sinopec to double its supplies of crude oil to China

According to the deal, KPC will export 300,000 bpd of crude oil, which amounts to 15 per cent of Kuwait’s petroleum exports and costs US$120bn.

Nasser Al-Mudhaf, managing director of international marketing at KPC, said, ”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.”

KPC and Sinopec are also in talks regarding a joint venture project to construct a 300,000 bpd refinery. If it materialises, Chinese crude oil exports could increase to 800,000 bpd. Feedstock for the plant will be also supplied by KPC when the project goes onstream, KPC officials said.

According to state-run news agency KUNA, Kuwait’s crude oil exports to China in the first half of this year stood at 3.87mn tonnes, equivalent to around 157,000 bpd.

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