Kuwait lifts China exports

Kuwait Petroleum Corporation (KPC) has expanded its crude shipment ties with China’s Unipec in a deal agreed Friday.

State-run KPC has agreed to almost double crude deliveries over a decade in what is the largest contract in its history.

The deal, which replaces an earlier contract, will see KPC increase shipments to Unipec from the current 170,000-bpd to 300,000-bpd.

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

In a statement to Kuwait News Agency (KUNA) after the signing ceremony in Hong Kong, KPC International Marketing managing director Nasser Al-Mudhaf said China is considered to be one of the most strategic and promising energy markets.

“The deal comes at a right time, because this is the first contract on C&F 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% of our fleet for deliveries of crude oil,” he added.

“Therefore, KPC has placed China on its priority list, and this is agreement is one of the most important crude contracts for KPC.

“With this landmark contract, I think we will be the third-largest crude oil supplier to China.”

Kuwait, the world’s seventh-largest oil exporter, supplied about 160,000-bpd of crude to China in the first half of this year, a nine-fold increase from 18,000-bpd in 2004, according to data from the Chinese government.