According to the Kuwait’s official and trading center, Kuwait has reached a 10-year agreement with China Petrochemical.
It will double the shipping oil to Sinopec in the next 10 years. Kuwait will sell oil in very competitive cost and freight.
Nasser al-Mudaf, the International Marketing Director of Kuwait State-owned Petroleum Company (KOC), said: “According to the agreement, KOC will export 300,000 barrels of crude oil every day to Sinopec. This accounts for 15 percent of Kuwait's total export volume, whose total valve is approximately $120 billion.” Mudaf disclosed that the new contract replaced the expired one, which contained 160-170 thousand barrels of export oil per day.
It was said that Sinopec provided Kuwait with more cost-effective contract, thus, crude oil supply from Kuwait increased. Meanwhile, Kuwait can use their own fleet to transport oil, which can make it competitive in terms of cost and freight. It is known that this will be the first crude oil supply contract based on cost and freight between China and Kuwait, which will be more competitive compared with former contract based on free trade.
Mudaf said: "We are always seeking oil markets
of high income and high stability."
Spokesmen of Sinopec and KOC said the official signing ceremony will be held in Hong Kong after three days.
Kuwait National News Agency quoted the official data and disclosed that Kuwaiti has exported 3.87 million tons of oil to China by July, about 157,000 million barrels/day. A survey of Reuters showed that the majority of Kuwait's crude oil is exported to Asia. The daily oil production of this Arabic country was 2. 81 million barrels in July.