Kuwait Petroleum Corporation Renews Crude Supply Deal with China’s Unipec

Kuwait Petroleum Corporation Renews Crude Supply Deal with China’s Unipec

Kuwait Petroleum Corp (KPC) has renewed its contract to supply 300,000 barrels per day (bbl/d) of crude oil to China’s Unipec, the trading arm of Asia’s largest refiner Sinopec, until 2033, according to Reuters.

Both companies also discussed ways to further strengthen their cooperation in various areas such as trade, engineering services, and low-carbon fields, according to Saudi Gulf Projects News Website.

In August 2014, KPC signed a 10-year deal with Unipec to supply crude oil with the volume expected to reach 300,000 bbl/d. At the time, KPC aimed to replace the 160,000-170,000 bbl/d crude supply contract due to its lapse.

KPC International Marketing Managing Director Nasser Al-Mudhaf emphasized the importance of the deal then, stating, “The deal comes at the right time, because this is the first contract on C&F (cost-and-freight) basis with the use of our own vessels to deliver crude oil. It will help smooth operation, production, and exports from Kuwait,”

“China is our new outlet where we will use more than 50 percent of our fleet for deliveries of crude oil,” he added, noting the company’s goal to become the third largest crude oil supplier to China.

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