Kuwait’s Cabinet approved the extension of a crude export agreement with Egypt , starting January 2017, with a 9-month, reported Al Rai. According to a senior Kuwaiti official, Kuwait will provide Egypt for the next three years with 2mb/m of cruse based on global prices, informed Bloomberg.
The official added that the shipments were not intended to make up for the loss of Saudi fuel shipments to the North African country. As, Saudi Arabian Oil Company, Aramco, has halted shipments of oil products to Egypt since October. As a result, Egypt has resorted to buying fuels on world markets at higher cost.
In older news, Egypt had signed an agreement to buy petroleum products from Kuwait with no discounts or grants. According to the agreement Egypt should pay in cash. Egypt had showed readiness to fulfill all the monthly requirements as per the agreement. This had come as the two countries are negotiating an agreement to refine Kuwaiti petroleum in Egyptian, as Kuwait aims to increase oil production to 4mb/d by the start of 2020.