Egypt’s EGPC to Buy 65% Oil Imports from UAE’s ADNOC

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Egyptian General Petroleum Corporation (EGPC) will buy 65 percent of its oil product imports from the United Arab Emirates’ ADNOC for one year after the government approved the deal on Wednesday.

The agreement covers gasoline, diesel, heavy fuel and liquefied petroleum gas (LPG) that is used in homes,Egypt’s cabinet said in a statement.

It did not give the prices agreed but an oil ministry official said last month that Egypt was seeking to buy about $9 billion of oil products from the UAE and that some of the products would come as grants and the remainder under a credit agreement that would be repaid in installments.

The official said Egypt imports petroleum products worth around $1 billion to $1.3 billion a month.

Egypt has struggled to curb its swelling budget deficit and meet its soaring energy demands, which have resulted in daily electricity cuts around the country of 86 million people.

Oil-producing Gulf countries have come to Egypt’s aid since the army, prompted by mass protests, ousted Islamist President Mohamed Morsi last year.

The United Arab Emirates, Saudi Arabia and Kuwait have together provided Egypt with more than $20 billion in grants, loans and petroleum products since Mursi’s overthrow.

Egypt also introduced deep cuts to energy subsidies in July, which have resulted in price rises of more than 70 percent.

Source :Reuters