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
Saudia Cargo partners with exports body to boost Kingdom’s products globally
RIYADH: Saudia Cargo and the Saudi Export Development Authority inked a strategic memorandum of understanding, in a move set to accelerate the international reach of non-oil goods.
The agreement, signed during the “Made in Saudi 2025” exhibition in Riyadh, aims to empower local industries and enhance the global competitiveness of national products.
This deal directly supports the Kingdom’s Vision 2030, which seeks to diversify the economy by growing non-oil exports, building a strong industrial base, and leveraging the nation’s geographic position to become an international logistics hub.
According to a press release, the partnership focuses on a shared commitment to strengthen the “Saudi Made” program, ensuring local products become a preferred choice in international markets.
Key areas of collaboration include supporting exporters, overcoming logistical and regulatory hurdles, facilitating export operations, building capacities, and developing innovative shipping solutions.
“The MoU also includes coordinating external participation in international exhibitions, collaborating on launching joint marketing and promotional campaigns, and opening new horizons for national products to be present in global markets,” the press release said.
This initiative extends Saudia Cargo’s ongoing efforts, including its “BEYOND” campaign launched earlier this year, to promote exports in line with national economic goals.
Saudia Cargo is a leading national carrier, operating a network spanning approximately 100 airport destinations and 250 customer bases across four continents.
With a modern fleet and a strategic alliance with SkyTeam Cargo, the company is well-positioned to support the rapid and secure transport of diverse goods, including e-commerce, pharmaceuticals, and perishables.
Saudi Exports is a government authority dedicated to developing non-oil exports by enhancing the competitiveness of the Kingdom’s exporters and removing barriers to international trade.
The Made in Saudi 2025 exhibition, held from Dec. 15 to 17, served as a platform for forging industrial and commercial partnerships, attracting investments, and exploring new export opportunities.
