SINGAPORE: Kuwait expects to seal new deals to supply Chinese buyers with crude amid healthy demand for its exports in Asia, an oil official from the OPEC Gulf producer told Reuters.
The country also plans to export a new light crude grade by January, as well as spending $120 billion (SR450 billion) over the next five years on expanding both its upstream and downstream businesses, said Waleed Al-Bader, deputy managing director marketing at state-run Kuwait Petroleum Corporation (KPC).
“We see now very healthy refining margins ... this is mainly because of the past months of the OPEC cuts,” Al-Bader said in an interview at the KPC office in Singapore on Wednesday, referring to a push led by Organization of the Petroleum Exporting Countries to curb global crude supply.
“We see medium sour demand is very healthy and we have been approached by several customers for additional cargoes or for new contracts in China.”
The buyers include some small independent Chinese refiners, known as ‘teapots’, said Al-Bader, who was in China last week.
He added that there had been some “firm” enquiries from buyers, mainly for single initial shipments of 2 million barrels, with the potential for discussing term contracts for next year.
Kuwait also plans to start selling a new grade of crude called Kuwait Super Light from January, said Al-Bader. The new light sour grade has an API gravity of 47 and a sulfur content of 1.6 percent, Al-Bader said.
Production of the new grade could reach up to 120,000 barrels per day, he said, but the company is still studying the pricing mechanism for the grade.
The Gulf oil producer’s capital expenditure plan from 2017 until 2022-23 is $120 billion, with most spending planned for its upstream operations, he said.
Kuwait’s output capacity now stands at 3.2 million bpd, with the company aiming to boost that to around 3.3 million bpd by end of the next fiscal year. Kuwait has been pumping around 2.7 million bpd, sticking to it production target under the OPEC supply cut pact, Al-Bader said.
Al-Badr said that he expected OPEC to extend output cuts beyond March 2018, with KPC seeing oil prices in a range of $50-60 a barrel for next year.
Kuwait is also studying establishing a new firm to market refined oil products. The company would help Kuwait sell oil products mainly from its refining joint venture at Duqm in Oman.
“We have got the approvals ... on establishing the company. We have different options and scenarios and we are studying them,” Al-Bader said.
“Hopefully by end of this year, we will have a full report to present ... on how to move forward,” he said, adding that whether the new firm would be a joint venture with another international oil company or trading house, or would be wholly owned by KPC is still being studied.
Kuwait expects to seal new deals to supply oil to Chinese buyers
Kuwait expects to seal new deals to supply oil to Chinese buyers
Saudi Arabia, Japan trade rises 38% between 2016 and 2024, minister says
RIYADH: Trade between Saudi Arabia and Japan has increased by 38 percent between 2016 and 2024 to reach SR138 billion ($36 billion), the Kingdom’s investment minister revealed.
Speaking at the Saudi-Japanese Ministerial Investment Forum 2026, Khalid Al-Falih explained that this makes the Asian country the Kingdom’s third-largest trading partner, according to Asharq Bloomberg.
This falls in line with the fact that Saudi Arabia has been a very important country for Japan from the viewpoint of its energy security, having been a stable supplier of crude oil for many years.
It also aligns well with how Japan is fully committed to supporting Vision 2030 by sharing its knowledge and advanced technologies.
“This trade is dominated by the Kingdom's exports of energy products, specifically oil, gas, and their derivatives. We certainly look forward to the Saudi private sector increasing trade with Japan, particularly in high-tech Japanese products,” Al-Falih said.
He added: “As for investment, Japanese investment in the Kingdom is good and strong, but we look forward to raising the level of Japanese investments in the Kingdom. Today, the Kingdom offers promising opportunities for Japanese companies in several fields, including the traditional sector that links the two economies: energy.”
The minister went on to note that additional sectors that both countries can also collaborate in include green and blue hydrogen, investments in advanced industries, health, food security, innovation, entrepreneurship, among others.
During his speech, Al-Falih shed light on how the Kingdom’s pavilion at Expo 2025 in Osaka achieved remarkable success, with the exhibition receiving more than 3 million visitors, reflecting the Japanese public’s interest in Saudi Arabia.
“The pavilion also organized approximately 700 new business events, several each day, including 88 major investment events led by the Ministry of Investment. Today, as we prepare for the upcoming Expo 2030, we look forward to building upon Japan’s achievements,” he said.
The minister added: “During our visit to Japan, we agreed to establish a partnership to transfer the remarkable Japanese experience from Expo Osaka 2025 to Expo Riyadh 2030. I am certain that the Japanese pavilion at Expo Riyadh will rival the Saudi pavilion at Expo Osaka in terms of organization, innovation, and visitor turnout.”
Al-Falih also shed light on how Saudi-Japanese relations celebrated their 70th anniversary last year, and today marks the 71st year of these relations as well as how they have flourished over the decades, moving from one strategic level to an even higher one.
