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Kuwait, China sign biggest crude supply deal

August 22, 2014

KUWAIT, 22nd August, 2014 (WAM)--State-run Kuwait Petroleum Corporation (KPC) and China's UNIPEC signed a landmark deal on Friday with the aims to almost double crude oil deliveries over a decade, the biggest-ever contract in KPC's history.

Under the agreement, KPC will provide UNIPEC crude oil, starting from 2014, with the volume expected to reach 300,000 barrels per day (bpd). KPC reached the historic 10 year deal with UNIPEC, the trading arm of China's top refiner Sinopec, to replace the 160,000-170,000 bpd supply contract that had lapsed.

In a statement to Kuwait News Agency (KUNA) after the signing ceremony in Hong Kong, KPC International Marketing Managing Director Nasser Al-Mudhaf, who led the Kuwaiti side, said, "We are very proud to sign this 10-year contract, which marks an excellent achievement as a package."

"The deal comes at a right time, because this is the first contract on C&F basis with the use of our own vessels to deliver crude oil. It will help smooth operation, production and exports from Kuwait," the official said, adding that "China is our new outlet where we will use more than 50 percent of our fleet for deliveries of crude oil."

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Source: Emirates News Agency (WAM) (United Arab Emirates)

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