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Page added on March 15, 2017

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Saudi Aramco to resume oil product shipments to Egypt soon

Saudi Aramco to resume oil product shipments to Egypt soon thumbnail

Saudi Arabian state oil company Aramco will resume oil product shipments to Egypt some six months after suddenly halting them, the Egyptian Petroleum Ministry said on Wednesday.

The ministry said in a statement it was working out a timetable with Aramco for the resumption of shipments and that commercial reasons related to global oil prices and reduced production were behind the suspension in October.

“It was agreed that the Saudi Arabian side would resume Aramco’s shipping of oil products as per the commercial contract signed between the Egyptian General Petroleum Corporation and Aramco,” the statement said.

An official at Egypt’s Petroleum Ministry said the shipments would resume very shortly.

“Very shortly we will finalize the time and place for receiving shipments from Aramco,” the official, who declined to be identified because he was not authorized to speak to the media, told Reuters.

Asked if shipments would resume within weeks, the official said: “No, no, we are talking about a very short time period.”

Saudi Arabia agreed in April last year to provide Egypt with 700,000 tonnes of refined oil products per month for five years but the cargoes stopped arriving in early October as festering political tensions burst into the open.

 

Reuters



One Comment on "Saudi Aramco to resume oil product shipments to Egypt soon"

  1. rockman on Thu, 16th Mar 2017 9:18 am 

    I suspect this is a result of either a softening in Chinese demand or their access to less expensive supplies. Remember the new big refinery is a 50/50 JV with China. No details ever released but a safe assumption China had the right of first refusal for those products.

    Just a rough estimate but that 700,000 tons per month would be about 160,000 bble/day. The refinery JV has a reported capacity of 600,000 bbls/day.

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