State-run Abu Dhabi National Oil Company (Adnoc) will start monthly deliveries of US$400 million of petroleum products to Egypt from next week until the end of October, a source at the state-owned Egyptian General Petroleum Corporation (EGPC) revealed on Thursday.
“It is expected the first shipments will arrive in a week from now,” the source said. He added that Egypt will receive the products on credit and was still negotiating the interest rate for payment. Adnoc is seeking a 3 percent rate, the source said according to Reuters.
The deal to supply the products was agreed last year.
Earlier this month traders said Adnoc had issued a tender to buy up to nine cargoes, or 300,000 tonnes, of gasoil for delivery into Egypt in April.
The Egyptian government had said EGPC will buy 65 percent of its oil product import needs from Adnoc in 2015. The agreement covers gasoline, diesel, heavy fuel and liquefied petroleum gas.