Kuwait Boosts Oil and Diesel Supplies to Egypt

Posted by Eric Haun
Tuesday, April 08, 2014

Kuwait will boost its supply of crude oil to Egypt by nearly a third and increase shipments of petroleum products in a deal the Gulf state's oil minister said was an obligation to help Cairo through its problems.

State-run Kuwait Petroleum Corporation (KPC) will provide 85,000 barrels per day (bpd) of oil to Egypt, up from 65,000 bpd previously, state news agency KUNA said on Tuesday.

It will also increase its supply of diesel and jet fuel to 1.5 million tonnes per year, up from 860,000 tonnes. The contracts run for three years and were signed on Monday, KUNA said.

Egypt has been relying on crude deliveries from the Kuwaiti government at favourable terms as well as on donations of gasoline and diesel from Gulf Arab states to help reduce the drain on its foreign exchange reserves and the heavy costs of government fuel subsidies.

"We will overcome any difficulties Egypt is suffering from and we will not hesitate to help them," Kuwait's oil minister Ali al-Omair told Reuters when asked whether Kuwait was concerned Egypt might have payment problems.

The new contracts, signed with Egypt's General Petroleum Corporation, are valid until the end of 2016 and based on global market prices, KPC official Nasser al-Mudaf told KUNA.

Mudaf, who runs KPC's global marketing division, added that KPC was willing to sign additional contracts with Egypt to supply cooking gas and fuel oil within the next two months and that these would also be based on international prices.

Kuwait is also considering using Egyptian refineries to process Kuwaiti oil as well as using shipping facilities in the country, Mudaf said.

Egyptian Oil Minister Sherif Ismail told Reuters in February that Egypt would need to import an additional $1 billion of petroleum products and secure significant natural gas supplies to meet energy needs for the summer.

The Gulf Arab states of Saudi Arabia, United Arab Emirates and Kuwait, wary of Egypt's Muslim Brotherhood, gave Egypt billions of dollars in aid, including oil, after the ousting of Islamist president Mohamed Mursi.

In July last year Kuwait pledged $4 billion to Egypt, with a $2 billion central bank deposit, a $1 billion grant and $1 billion in oil products. This was separate from oil supply contracts which Kuwait has had with Egypt for years and which were due for renewal.

(Reporting by Ahmed Hagagy and Sylvia Westall; Editing by Jason Neely and Dale Hudson)

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

Energy

Russian Minister to Intervene with Gazprom on Slovakia Gas Flow

Russia's Energy Minister Alexander Novak will intervene with Gazprom to raise reduced gas shipments to Slovakia to contracted levels, Slovakia's economy ministry

Total Names Refining Boss to Replace de Margerie

French oil company Total has appointed refining boss Patrick Pouyanne as chief executive to succeed Christophe de Margerie who was killed in a plane crash in Moscow this week.

Asia-Pacific Solar Collaboration Conference

The Australian Photovoltaic Institute is holding the inaugural Asia-Pacific Solar Research Conference at the University of New South Wales in Sydney from 8-10 December 2014.

News

Video: USCG Medevacs Navy Sailor off Virginia

The U.S. Coast Guard (USCG) medevaced a man Wednesday from a Navy vessel off the Virginia coast after watchstanders at Coast Guard Sector Hampton Roads in Portsmouth

VT Halter Begins Building LNG-powered ConRo Ships for Crowley

VT Halter Marine, Inc., a subsidiary of Vision Technologies Systems, Inc. (VT Systems), has commenced construction on the first of two liquefied natural gas (LNG)-powered,

New Research Vessel Delivered on the Great Lakes

The new oceanographic research and fisheries assessment vessel, Arcticus, completed her sea trials and was delivered to the U.S. Geological Survey's Great Lakes Science Center on October 17.

Government Update

Russian Minister to Intervene with Gazprom on Slovakia Gas Flow

Russia's Energy Minister Alexander Novak will intervene with Gazprom to raise reduced gas shipments to Slovakia to contracted levels, Slovakia's economy ministry

AMSA Rescues 2 East of Darwin After Boat Sinks

The Australian Maritime Safety Authority (AMSA) coordinated the rescue of two men early this morning East of Darwin. About 4.30am AEDT this morning, AMSA detected

USS Milius Departs on Deployment

The guided missile destroyer USS Milius (DDG 69) departed Naval Base San Diego Oct. 20 on an independent deployment to the Western Pacific and Indian Oceans.

Middle East

KOTC Takes Delivery of Product Tanker Mutriba

Classification society ClassNK said it has completed work on the 31,445 GT product tanker Mutriba, built by Hyundai Mipo Dockyard Co., Ltd. (HMD) as part of a series

Gulf Craft to Invest $100m in Dubai Shipyard

Company plans to invest $100 million over the next five years in the development of a new shipyard in Dubai Maritime City to build a global luxury yachts manufacturing

Procedures for OPL Attendance at Mina Saqr

Saqr Port Authority has advised that, with effect from 16 October, new procedures will come into force for personnel attendance Off Port Limits (OPL). Documents

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Pod Propulsion Salvage Ship Electronics Ship Repair Ship Simulators Sonar 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: 0.3210 sec (3 req/sec)