Kuwait signs biggest crude supply deal with China

August 22, 2014 - 1:38:49 pm

KUWAIT CITY: State-run Kuwait Petroleum Corporation (KPC) and China's UNIPEC signed a landmark deal on Friday that will almost double crude oil deliveries over a decade, the biggest-ever contract in KPC's history.

Under the agreement, KPC will provide Unipec crude oil, starting from 2014, with the volume exepeted to reach 300,000 barrels per day (bpd).

KPC reached the historic 10 year deal with Unipec, the trading arm of China's top refiner Sinopec, to replace the 160,000-170,000 bpd supply contract that had lapsed, Kuwait news agency KUNA reported.

According to KPC, it is a strategic contract based on cost-and-freight (C&F) basis, which will involve utilizing of Kuwait Oil Tanker Co. fleet.

Friday's deal is within the same direction of a Memorandum of Understanding (MoU) signed by KPC and Unipec in November 2011. (QNA)