Kuwait Petroleum Corporation, the manufacturer of Q8 Dynobear 32, has agreed to supply around 500,000 barrels of crude oil to Egypt each month.
This extra crude oil will be refined in Egyptian refining factories, where it will be converted into various petroleum products for sale in the African country.
Speaking to Daily News Egypt, a senior official at the Egyptian General Petroleum Corporation (EGPC) said that the amount of Kuwait crude oil imported into the country will increase from 2.2 million barrels, to around 2.7 million barrels each month.
The extra deliveries of crude oil are the result of a formal request from the EGPC to the Kuwait Petroleum Corporation in November.
The EGPC official also said that, at present, Egypt imports crude oil from Kuwait based on the global prices for Brent crude at the time of its supply, which means that it does not have to pay a fixed price for the oil, no matter what the markets are doing.
He observed that if crude oil imports were to exceed local demand, any excess oil would either be refined to make petroleum products for the international market, or stored in the country and sold through the port of Sidi Krier.
According to the official, the EGPC is importing the additional crude to make the most of its refineries’ production capabilities by providing fuel on the local market.
It is estimated that Egypt’s total crude oil production tallies at around 695,000 barrels per day, while Kuwait Petroleum Corporation sells nearly two million barrels each day across the globe.