Kuwait renewed crude supply contracts with BPCL
Kuwait has renewed two crude oil supply contracts with India’s BPCL and BORL of worth up to 3.7 billion dollars a year.
Kuwait on 7 May 2014 renewed the crude supply contracts with India’s Bharat Petroleum Corporation Ltd (BPCL) worth up to 3.7 billion dollars a year.
In the process or renewal of the contract the State-owned Kuwait Petroleum Company (KPC) has signed one contract with the BPCL and another with its subsidiary Bharat Oman Refineries Ltd (BORL).
Kuwait is a member state of OPEC and per day it produces 3 million barrels of oil of which two thirds is exported by it.
Organization of the Petroleum Exporting Countries (OPEC)
The Organization of the Petroleum Exporting Countries (OPEC) was founded in Baghdad, Iraq, with the signing of an agreement in September 1960 by five countries namely Islamic Republic of Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. They were to become the Founder Members of the Organization.
These countries were later joined by Qatar (1961), Indonesia (1962), Libya (1962), the United Arab Emirates (1967), Algeria (1969), Nigeria (1971), Ecuador (1973), Gabon (1975) and Angola (2007).
From December 1992 until October 2007, Ecuador suspended its membership. Gabon terminated its membership in 1995. Indonesia suspended its membership effective from January 2009.
Bharat Petroleum Corporation Limited (BPCL) is a fortune 500 oil refining, exploration and marketing PSU with Navratna status. It was nationalized in 1976. BPCL has two refineries namely Mumbai refinery in western India and Kochi refinery in the south of the country. It has its majority stakes in the Numaligarh refinery in northeast India and Bina Refinery in the Central India.
Productions of both the refineries
• Mumbai refinery - 240000 barrels per day
• Kochi refinery - 190000 barrels per day
• Numaligarh refinery – 60000 barrels per day
• Bina refinery – 120000 barrels per day
The state-owned Oman Oil Company has a minority stake in the Bina refinery that is operated by Bharat Oman Refineries Ltd.