Egypt, Kuwait Renew Oil Supply Contracts
According to a press release to Egypt Oil&Gas, the Egyptian General Petroleum Corporation (EGPC) renewed two 3-year commercial contracts with Kuwait Petroleum Corporation (KPC) in the presence of the Egyptian Minister of Petroleum and Mineral Resources, Tarek El Molla.
The contracts were signed by EGPC’s Executive Vice President, Hesham Nour El-Din, and KPC’s Managing Director of Global Marketing, Nabil Bouresli.
The contracts state that Kuwait will supply Egypt with 2.5m tons/y of petroleum products and 2mb/m of crude oil to be processed in the Egyptian refineries.
The two parties also agreed on a new payment facilitation for the value of the shipments. The new deal states that the repayment period of the imported petroleum products will extend to 180 days instead of 90, while the repayment period of the crude oil will extend to 270 days.
According to El Molla, “the Egyptian petroleum sector holds a well-established and developed commercial relationship with KPC. The foundation of the relationship is the commitment of the two sides to fully cooperate in achieving the common benefit between the two countries.”
The minister added that in the beginning of 2017, a renewed contract was signed with Sumed to market the Kuwaiti crude oil to foreign markets through Egypt as the quantities of oil transported and stored increased, which emphasizes the economic integration and exploitation of infrastructure between the two countries.