Kuwait signs $2-B oil supply contract with Philippines' Petron

Posted at 08/28/14 9:53 AM

SINGAPORE - State-run Kuwait Petroleum Corp (KPC) has inked an annual contract with Philippine refiner Petron Corp to supply an estimated $2 billion worth of oil in 2015, Kuwait's KUNA news agency reported on Wednesday.

The KPC-Petron deal comes on the back of a 10-year supply agreement between Kuwait and China last week as the OPEC producer entrenches itself as a key oil supplier to Asia.

KPC will supply 65,000 barrels per day of oil to Petron in the contract which is renewed automatically each year unless one of the parties seeks to cancel the contract, KPC's managing director of global marketing Nasser Al-Mudhaf was quoted as saying in the report.

KPC hopes to increase the term volume to 100,000 bpd and is also looking to sell the crude on a delivered basis, he said.

"Entering the Philippine market is considered an achievement for the Kuwaiti oil sector," Al-Mudhaf said, noting that the country is one of the fastest-growing economies in Southeast Asia.

Petron is due to complete an upgrade at its 180,000 barrels per day refinery by end-2014 which allows it to process more Middle East crude and boost its petroleum output by 40 percent.