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 May 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Energy

Solarworld Wants Duties on Chinese Solar Goods in U.S. Extended

German solar manufacturer SolarWorld will apply to the United States for an extension of duties on Chinese panel imports that are due to end this year, weekly Euro am Sonntag said.

Red Tape, Industrial Relations Could Stifle LNG Potential

Australia could develop the world’s most technologically advanced LNG industry, according to a report by Accenture. But if industry is to reach its potential

Shell CEO Backs Fossil Fuels, Climate Change Warnings

The world's fossil fuel reserves cannot be burned unless some way is found to capture their carbon emissions, Royal Dutch Shell Plc Chief Executive Officer Ben van Beurden said on Friday.

News

Solarworld Wants Duties on Chinese Solar Goods in U.S. Extended

German solar manufacturer SolarWorld will apply to the United States for an extension of duties on Chinese panel imports that are due to end this year, weekly Euro am Sonntag said.

Sea Urchin Haven Disturbed by Oil Spill

Stephanie Mutz makes a living plucking sea urchins from the Santa Barbara coast and selling the prickly treasure to upscale restaurants in Southern California.

5 Tunisian Migrants Die in Shipwreck

At least five Tunisian migrants died on Saturday when their boat sailing to Italy capsized off the Tunisian coast, officials said. "A migrant boat carrying

Government Update

Solarworld Wants Duties on Chinese Solar Goods in U.S. Extended

German solar manufacturer SolarWorld will apply to the United States for an extension of duties on Chinese panel imports that are due to end this year, weekly Euro am Sonntag said.

Alaska, Washington to build Arctic Icebreakers

Senator Lisa Murkowski, Alaska, and Senator Maria Cantwell, Washington, have introduced a bill that would authorize the Navy to build up six icebreakers for use by the U.

Launch of First Future Destroyer, Hobart

Speech delivered by the Minister for Defence, Kevin Andrews during the launch of Hobart - the first future destroyer: Thank you for being here on this very important day.

Middle East

WFP: Aid Cargo for Yemen will be Delivered After Ship Docks

The World Food Programme will deliver a cargo of Iranian aid for Yemen once the ship carrying it reaches Djibouti's port, the U.N agency said on Friday. Earlier

Iran Aid Ship Reaches Djibouti Waters, Waits to Enter Port

An Iranian aid ship has reached the outskirts of Djibouti's port and is waiting for a permit to enter after Tehran agreed to an international inspection of the vessel with goods for Yemen,

Italy: 900 Migrants Rescued at Sea, One Dead

More than 900 migrants were rescued in one day from three overcrowded boats en route to Europe from North Africa, an Italian coast guard official said on Thursday.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Naval Architecture Navigation Port Authority Salvage Ship Electronics Winch
rss | archive | history | articles | privacy | 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: 0.1548 sec (6 req/sec)