Egypt: Oil agreement with Iraq will enter into force very soon

Bertha News Agency 23 2017-03-23

Egyptian Minister of Petroleum and Mineral Resources, Tariq Al-Mulla, stressed that there are no obstacles hindering the agreement with the Iraqi side to import one million barrels of oil per month.

"The agreement with the Iraqi side is in place and will come into force very soon," Mullah told the Egyptian daily Al-Watan.

"We have finished negotiating with the Iraqi Ministry of Oil and the Iraqi Oil Corporation, but there remains only agreement on some of the regulatory and technical measures necessary to start the supply of shipments."

The Iraqi agreement with the Egyptian side on the export of one million barrels per month of Basra light oil for one year renewable, and conditions of payment facilitation, in addition to that will be refining Iraqi crude oil in Egyptian refineries.

"We have been getting Iraqi oil from international traders and suppliers for a long time, but the government agreement between the Egyptian General Petroleum Corporation and the Iraqi Oil Corporation [SOMO] will be better for us because it includes soft terms and payment facilities," Mulla said.

He pointed out that "the resumption of shipments of oil and petroleum products by Saudi Aramco will not delay the completion of the agreement with Iraq," adding that "the volume of supplies supplied by the Saudi company and estimated at 700 thousand tons represent only about 40% of the total petroleum products that Imported by the country. "