(MENAFN- Arab Times) HONG KONG Aug 23 (KUNA): Kuwait plans to increase the volume of crude oil exports to China to 500000 barrels a day (bpd) and eventually to 800000 bpd an executive at the state-run Kuwait Petroleum Corporation (KPC) said Saturday. 'With new and mutual cooperation between the two parties there is a good sign of increasing the volume of our crude oil exports to China up to 500000 bpd in the next three years which is subject to availability' Nasser Al-Mudhaf KPC's Managing Director of International Marketing made remarks in an interview with Kuwait News Agency (KUNA) in Hong Kong. Al-Mudhaf is currently in the city where he signed a 10-year landmark deal on Friday with Unipec the trading arm of China's top refiner Sinopec to supply 300000 bpd of crude oil the biggest ever contract in KPC's history. 'This agreement is one of the most important crude contracts for KPC and is considered the biggest sales deal by volume and revenues in all regions' he said. According to the official the contract is not related to an ongoing joint project between KPC and Sinopec for the construction of a 300000 bpd refinery of which feedstock will be also supplied by KPC when the plant goes on-stream. 'If the joint venture materializes China-bound shipments may hit 800000 bpd.' he noted. Also on Friday Al-Mudhaf and Unipec President Chen Bo agreed to enhance energy cooperation between the two state-owned companies. The two put great emphasis on bilateral future cooperation and decided that their executives will meet annually at their headquarters either in Kuwait or China. Supply Al-Mudhaf and Chen also agreed to hold monthly meetings between officials from KPC's Beijing Representative Office and Unipec headquarters from next month with the aim of the smooth execution of their long-term crude supply contract and support for business operations of KPC in the world's second biggest energy market. Asked about a Memorandum of Understanding in June signed by KPC Chief Executive Officer Nizar Al-Adsani and Sinopec Chairman Fu Chengyu in Beijing on enhanced cooperation between KPC and Sinopec in such areas as crude reserves storage and refinery project Al-Mudhaf replied that KPC is studying utilizing crude storages within China to facilitate the storages for the Chinese customers and market. 'This will give us more flexibility in the crude movements and operations in China and will add more services in addition to the ones we have already provided' he said. 'Sinopec is always growing and expanding in refining capacity in particular. I believe there will always be a room for sales expansion especially both managements share same interests security and reliability of supply.' Noting that Kuwaiti crude oil shipments to China in the 1st half of 2014 were 157000 bpd increased almost 9-fold from 18000 bpd of 2004 the official said the figures are clearly noticeable evidence that the business relationship between the two sides has been enhanced and flourished since the establishment of KPC Beijing Office in 2005. 'The Beijing office has also opened more opportunities and other areas of business cooperation between Kuwait and world's second-biggest energy importer. In addition it has closed the gap and shortened the distance between the supplier and consumer in particular' he said. He went on to say that his department is attempting to have a foot hole around the globe as diversification is one of KPC's strategic directions while focusing on the growing Asian market. 'Asia is the logical geographical viable market with the fastest growing in demand. Moreover it has the highest netback among other markets.' In 2004 crude and petroleum products shipments to Asia account for around 80 percent of KPC's total exports according to Al-Mudhaf. KPC is also considering multiple joint ventures within Asia China India and Indonesia he added. Al-Mudhaf was accompanied by International Marketing Deputy Managing Director Jamal Al-Loughani Team Leader Mohammad Al-Qallaf Senior Crude Oil Sales Representative Anwer Al-Huraiti and Sales Representative Fahad Al-Radi. KPC Beijing Chief Representative Ahmad Al-Sallal was also present.
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