Kuwait to Boost Oil Exports to China

Posted by Joseph R. Fonseca
Saturday, August 23, 2014

 

Kuwait plans to increase the volume of crude oil exports to China to 500,000 barrels a day (bpd) in three years, an executive at the state-run Kuwait Petroleum Corporation (KPC) said Saturday.

On Monday, Kuwait concluded a new 10-year deal with a China's Sinopec Corp to nearly double its supplies by offering to ship the oil and sell it on a more competitive cost-and-freight basis.

"With new and mutual cooperation between the two parties, there is a good sign of increasing the volume of our crude oil exports to China up to 500,000 bpd in the next three years," Nasser Al-Mudhaf, KPC's Managing Director of International Marketing told Kuwait's News Agency (KUNA).

Under the deal signed this week, KPC will initially export 300,000 barrels per day (bpd) of crude oil, which would amount to 15 percent of Kuwaiti petroleum exports and estimated to be worth $120 billion.

According to Al-Mudhaf, the contract is not related to an ongoing joint project between KPC and Sinopec for the construction of a 300,000 bpd refinery. Feedstock for the plant will be also supplied by KPC when it goes on-stream.

"If the joint venture materializes, China-bound shipments may hit 800,000 bpd," he added.

State news agency KUNA, quoting government data, reported in July that Kuwait's crude oil exports to China in the first half of this year stood at 3.87 million tonnes, equivalent to around 157,000 bpd.

Most of Kuwait's exports go to Asia. The Gulf Arab state pumped 2.81 million bpd in July, according to a Reuters survey.

(Reporting by Amena Bakr; Editing by Rosalind Russell)

Maritime Reporter October 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Energy

US House to Hold Hearing on Oil Export Ban

A House of Representatives panel will hold a hearing on Dec. 11 to explore whether a decades-old law that prohibits the export of crude oil makes sense in an era of domestic energy abundance.

Energy’s Promising Future Threatened

Unrealistic Fears and Overstated Risks obscure the benefits of new seismic data. The United States stands poised on the edge of a bright energy future. After decades

Pile Testing for Wikinger Wind Farm Launched

In October 2014 the first phase of the pile testing campaign for the Wikinger offshore wind farm project was launched after the site’s geotechnical investigation on the Baltic Sea had been completed.

News

US House to Hold Hearing on Oil Export Ban

A House of Representatives panel will hold a hearing on Dec. 11 to explore whether a decades-old law that prohibits the export of crude oil makes sense in an era of domestic energy abundance.

Bollinger Delivers 11th FRC to the US Coast Guard

Bollinger Shipyards, Inc. has delivered the William Trump, the 11th Fast Response Cutter (FRC) to the United States Coast Guard.   The announcement was made by Bollinger Chief Operating Officer,

Australian Defence Minister Says Would Not Trust Submarine Firm to Build Canoe

Australia's defence minister has said he would not trust state-owned Australian Submarine Corp (ASC) "to build a canoe", fuelling expectations that most work in

 
 
Maritime Contracts Maritime Standards Naval Architecture Offshore Oil Pipelines Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1744 sec (6 req/sec)