Egypt has entered into an agreement with Kuwait Petroleum Corporation (KPC) for the import of crude oil from the country.

Under the agreement, KPC will supply the country with 3 million BO per month as well as a $1.2 billion solar and jet-fuel supplies per annum.

According to an official, the agreement is for 2million BO per month, to be paid before September 2016, with an alternative for an extra 1million bbls, to be paid back in a period of one month. As stipulated in the contract, the prices for the products, is to be determined by the price of crude in the international market with no interest rates included.

If oil imports should surpass domestic demand, it will be refined locally and sold to the international market or stored. The official added that EGPC was making an effort to completely make use of its refining abilities to process crude for the local market.

However, KPC which sees Egypt as a possible logistics center for energy in the region, is setting up a representative office in the country to strengthen its marketing efforts, Egypt Oil and Gas News reports.

Anita Fatunji