ENERGY

Kuwait agrees deal to boost Egypt energy supplies

Part of a newly agreed commercial deal, Kuwait will supply Egypt with 85,000 barrels of oil daily and 1.5 million tonnes of fuel for three years. (File photo: Shutterstock)

Kuwait said Tuesday it will supply Egypt with 85,000 barrels of oil daily and 1.5 million tonnes of fuel for three years as part of a newly agreed commercial deal.

The supplies would be valued at market prices and delivered by the end of 2016 under the agreement struck on Monday, said Kuwait Petroleum Corp. marketing chief Ibrahim al-Mudhaf.

"The agreement is commercial and not political," Mudhaf was quoted as saying by the official KUNA news agency.

The deal would raise Kuwait's exports to Egypt to 85,000 barrels per day from 65,000 previously, and to 1.5 million tonnes of diesel and aviation fuel annually from 860,000, he said.

The two sides were also discussing two other contracts for Kuwait to supply cooking gas and fuel oil to Egypt, Mudhaf said, adding the agreements could be finalized within two months.

Cairo and Kuwait City were also discussing a number of oil-related investment opportunities, he said.

Following the Egyptian military's ouster of Islamist president Mohamed Mursi in July, Kuwait offered Cairo an aid package worth $4 billion.

The package included a grant of $1bn, a deposit of $2bn at Egypt's central bank, in addition to oil and oil products worth $1bn.

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Last Update: Tuesday, 8 April 2014 KSA 15:44 - GMT 12:44
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Kuwait agrees deal to boost Egypt energy supplies
The new deal raises Kuwait’s oil exports to Egypt to 85,000 barrels per day from 65,000 previously
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