This is a milestone deal for KPC, under which, as of 2014 KPC will provide Unipec crude oil with the volume expected to reach 300,000 barrels per day (bpd). The amount equals to one VLCC heading from Kuwait to China on daily basis.
The ten-year contract, that replaces the previous 160,000-170,000 bpd supply agreement, will see involvement of Kuwait Oil Tanker’s fleet.
“With new and mutual cooperation between the two parties, there is a good sign of increasing the volume of our crude oil exports to China up to 500,000 bpd in the next three years,” KPC’s Managing Director of International Marketing, Nasser Al Mudhaf, told Kuwait’s News Agency (KUNA).
“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.
“China is our new outlet where we will use more than 50% of our fleet for deliveries of crude oil,” he went on to say.