Egypt and the Kuwait Petroleum Corporation (KPC) have signed an agreement to supply Egypt with up to 3m barrels of oil per month through September 2016, as well as solar and jet-fuel supplies worth $1.2b annually, Daily News Egypt reports.
The deal is for 2m barrels of oil per month, paid during the 9 month period, with an option for a further 1m barrels, to be repaid in a one month period. Prices will be set by the global price of crude and interest rates were not included in the contract, an official close to the deal said.
The official said that in the case oil imports would exceed domestic demand, the imports would be refined in Egypt and resold to the international market or stored. He said that the EGPC was attempting to fully utilize its refining capabilities to process crude for the local market.
The KPC is opening a representative office in Egypt to facilitate its marketing efforts in the Middle East. KPC views Egypt as a potential logistics hub for energy in the region.