Cairo – Decypha: The Egyptian General Petroleum Corporation (EGPC) has signed on 5 April a three-year contract renewal with Kuwait Petroleum Corporation (KPC) to supply crude and petroleum products.

The supplies involved 1.5 million tonnes of petroleum products on an annual basis and two million barrels of crude on a monthly basis, to be refined in Egyptian refineries. The KPC said the agreement is worth over $4 billion, AFP reported.

Both countries agreed on extending the grace period of credit terms to 180 days instead of 90 days for the petroleum products, and 270 days for the crude contract, according to a statement from the Egyptian Ministry of Petroleum.

Egypt has signed in early this year a contract with the Arab Petroleum Pipelines Company (SUMED) to transfer and provide storage for the Kuwaiti crude in Egypt, to be later marketed in external markets, Egypt’s Petroleum Minister Tarek El Molla said.

Kuwait was supplying Egypt with monthly crude oil in a three-year contract that ended in December 2015.

Deputy CEO of the EGPC Hesham Nour El Din said the deal, which will end in late 2019, will meet the needs of the Egyptian refineries to secure the growing domestic market demands.

By Decypha Editorial Team