The Kuwait Petroleum Corporation (KPC) and ShanDong Refining and Chemical Group of China have reportedly signed a co-operation agreement to promote the sale of Kuwait crude oil. The deal was signed by KPC CEO Nizar Al-Adsani and Li Xiangping, Chairman of Board of Directors, ShanDong.
The deal, which is aimed at expanding Kuwait’s joint venture platform in oil and logistic industries, was signed on the sidelines of His Highness Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah’s recent visit to China.
ShanDong is one of the leading bases in oil industry in China and is known for hosting a large number of state and privately-owned refineries.
In April 2017, KPC hosted a visitation of high level delegation of representatives from a number of oil refinery companies in the coastal province of Shandong. During the visit the delegation was acquainted with the Kuwaiti expertise in petroleum manufactures. This visit seemed to have a very positive impact and enhanced cooperation between KPC and Chinese oil companies. The inking of the present deal is also an outcome of the mentioned delegation visit, apparently. Through the deal KPC and Shandong have reached a mutual agreement to export the very first batch of Kuwaiti crude oil to ShanDong Group at the end of July,2018.
Li Xiangping also expressed elation at the signing of the deal and predicted that as a result of the deal there would be a significant economic outcome for both countries. Li added that the ShanDong Refining and Chemical Group is willing to continue cooperation with KPC in various fields, specifically crude oil.
His Highness the Amir’s intentions behind the recent visit to China held special significance as it was aimed at increasing bilateral cooperation of China with Kuwait through investments and joint trades. Other sectors that were targeted were trade, energy and finance along with Kuwait’s hopes of becoming a part of China’s Belt and Road Initiative, better known as the modern-day Silk Road.