Newspaper: Egypt contracted on Iraqi oil shipments arrive early may


Oil official source revealed that the General Petroleum Authority expired last week from signing a contract with the Iraqi company SOMO, concerning the supply of 12 million barrels of crude oil a year, according to the seventh day.

The official added, according to the seventh day, that Egypt will begin receiving shipments beginning next May.

He said that the agreement between the parties include supply 2 million barrels of Basrah light oil every two months, with easy payment terms up to 90 days grace period before payment.

He noted that the Iraqi side was willing to be a one-month grace period before payment, but negotiations between the two parties over three months.

He added that oil body get long on Iraqi oil through dealers and global suppliers, but governmental agreements are considered the best because it includes soft conditions and facilities.

Egyptian oil Minister, said last December that his country sought to direct contracting with Iraq to import oil.

Egypt's fuel requirement stands at 6.5 million tons, part of domestic production, the rest being imported.

The oil Ministry announced last month, to resume supply Saudi Aramco petroleum products shipments according to commercial contract signed between Saudi Aramco oil Corporation.

Saudi Aramco has signed an agreement with the Egyptian Petroleum Corporation to supply petroleum products for five years, with funding from the Saudi Fund for development in Egypt signed agreements between package and Saudi Arabia in January 2016, valued at 25 billion dollars, according to the declarations of the magic insist Minister for international cooperation.

Under the agreement, Egypt receives every month 400 thousand tons of diesel fuel, and 200 tons of gasoline, and 100 thousand tons of mazut, a line of credit with a 2% benefit payment is 15 years.

The oil Ministry has renewed a few weeks ago, commercial contracts for the supply of petroleum products and crude oil, between the Egyptian General Petroleum Corporation and Kuwait Petroleum Corporation, for three years, in amounts up to 1.5 year of petroleum products, in addition to 2 million barrels of crude per month for recycling plants.