Egypt eager to increase oil cooperation with Kuwait – Min.

Egyptian Minister of Petroleum and Mineral Resources Tariq Al-Mulla underlined on Sunday Egypt’s eagerness to beef up energy cooperation with Kuwait.

Speaking to the press on the sidelines of the 99th meeting for the ministerial council of the Organization of Arab Petroleum Exporting Countries (OAPEC), Al-Mulla pointed out that Egypt had granted several Kuwaiti companies, including Kuwait Energy Co. and the Kuwait Foreign Petroleum Exploration Company (KUFPEC), concession rights to explore for oil in the country.

Egypt had also inked contracts with the Kuwait Petroleum Corporation (KPC) to purchase two million barrels of crude oil per month, he said, noting that the agreement allows payment delays for up to nine month.

In 2010, Egypt hammered out a three-year renewable agreement with Kuwait to buy 900,000 of diesel annually, and renewed and increased the amount to 1.4 million barrels a year, he said.

The minister lauded the fruitful cooperation between the state-owned Egyptian General Petroleum Corporation (EGPC) and Kuwait Energy Company.

The EGPC had awarded Kuwait Energy Co. several petroleum services projects in Egypt and Kuwait Energy had signed two partnership agreements with the EGPC for cooperation two oil and gas projects in Iraq.

He shed lights on the successful joint Egyptian-Gulf project of the Arab Petroleum Pipelines Company (SUMED), in which Egypt owned 50 percent and Kuwait had 15 percent stake.

He clarified that Sumed oil pipeline transports Gulf crude oil from the Gulf of Suez to offshore Sidi Kerir, Alexandria, on the Mediterranean Sea before shipping it to Europe and America.

Egypt was discussing with Gulf countries a proposal for refining their crude in Egypt and purchasing some of the refined products, he said, adding that if this proposal was approved it would be beneficial for both sides as Egypt would meet its needs of refined products and the Gulf countries would save costs of crude transportation.

Source: kuwait news agency