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National Bank of Egypt (NBE) has approved to open letters of credit worth $240mn for the shipment of oil from Kuwait, Zawya news website has reported.
The funds have been approved in favor of Egyptian General Petroleum Corporation (EGPC). An official source said that NBE approved to issue letters of credit at the end of last year for EGPC so as to import Kuwaiti crude oil shipment estimated at 2mn barrels a month to meet the local demand for fuel.
The deal was signed this week with the Arab Petroleum Pipeline Co., known as SUMED. SUMED, which owns and operates Egypt’s Mediterranean port of Sidi Kerir, is half owned by state-run oil company Egyptian General Petroleum Corp (EGPC), while a group of four other Gulf Arab countries – Saudi Arabia, Kuwait, United Arab Emirates and Qatar – own the other half.
Last month Reuters reported that Kuwait has shipped around 2mn barrels of crude oil in early October to Egypt, giving it priority as a buyer ahead of sales from storage into the Mediterranean market.
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