(MENAFN - Kuwait News Agency (KUNA)) The state-owned Kuwait Petroleum Corporation (KPC) signed Wednesday a USD 2 billion-worth crude oil supply contract with Petron Singapore Trading Limited, a subsidiary of Philippine Petron Corporation.
"As per the contract, the KPC will supply Petron with 65,000 barrels of Kuwaiti crude oil on a daily basis for one year starting on January 1, 2015," KPC's International Marketing Managing Director Nasser Al-Mudhaf told KUNA on the sideline of the contract-signing ceremony held at Petron Corporation HQs in the Philippine capital Manila.
"The contract would be renewed automatically unless one of the two signing parties asked for its abolishment."
Al-Mudhaf noted that talks held with Petron officials on the sidelines of the ceremony showed a desire from the Philippine company to expand partnership with KPC in the future and to increase the amount of purchased crude to 100,000 barrels a day.
The talks also touched upon the possibility of transporting the whole quantity or part of it by the Kuwait Oil Tanker Company (KOTC) fleet to Petron's port, he unveiled.
"Entering Philippine market is considered an achievement for Kuwaiti oil sector," Al-Mudhaf said.
"The Philippines is one of the most growing and promising markets in Southeast Asia."
He underlined that the contract comes in line with the KPC strategic goals of concluding long-term deals, especially in Asian markets.
With regard to KPC's efforts to increase Kuwait's share on Indian oil market, Al-Mudhaf said that "KPC has sined huge deals with Indian partners and is keen on enhancing its presence there."
He, however, acknowledged Kuwait is facing a very fierce competition on the Indian market from South American and West African oil exporting countries.
He disclosed that that KPC is studying the possibility of storing quantities of Kuwaiti crude oil in recently established Indian oil reservoirs in return for increasing Kuwait's share of Indian oil imports.
For his part, Petron Singapore Ltd Chairman and Chief Executive Officer CEO Ramon S. Ang told KUNA that his company has spent two billion dollars for developing a modern and highly sophisticated refinery which will refine the contracted upon Kuwait crude oil.
He expressed pleasure for signing the contract with KPC.
He added that he is looking forward to expanding of cooperation and partnership with KPC in the future.
Petron Corporation is the largest oil refining and marketing company in the Philippines. Supplying nearly 40 percent of the country's oil requirements, our world-class products and quality services fuel the lives of millions of Filipinos everyday.
It operates an integrated crude oil refinery and petrochemicals complex with a rated capacity of 180,000 barrels per day in Limay, Bataan. Its Integrated Management System (IMS)-certified refinery processes crude oil into a full range of petroleum products including gasoline, diesel, liquefied petroleum gas (LPG), jet fuel, kerosene, industrial fuel oil, and petrochemical feedstock benzene, toluene, mixed xylene, and propylene.