Iraq agrees to supply Egypt with 4 Million Barrels of Oil per Month

An official in the Egyptian Ministry of Petroleum said on Sunday that Iraq and Egypt agreed to a request to supply 4 million barrels of crude oil per month with facilities currently under negotiation between the two countries.

The Egyptian official, who requested anonymity, told the Anatolia News Agency, that these quantities equivalent to about 133 thousand barrels per day, which will contribute to provide a great deal of Egypt’s needs of crude oil.

Domestic demand for petroleum products in Egypt exceeds 2.1 million barrels per day, by a deficit of up to 500 thousand barrels per day, is being imported in the form of diesel and gasoline products, according to the Ministry of Petroleum and statistics.

The official explained that Egypt has asked Iraq to repay the credit facility along the lines of its agreement signed with Kuwait, allowing Egypt to pay for shipping after 9 months of receiving it, but Iraq demanded to reduce the allowed period in line with the needs of the financial period.

Egypt has taken negotiations with Iraq to import 4 million barrels of oil in 2013, but the negotiations have been suspended over demands by the Government of Iraq at the time of their Egyptian counterparts to provide some of the credit requirements on the value of shipments.

Kuwait Petroleum Corporation is currently supplying three million barrels of crude per month, in addition to 1.2 million tons of diesel per year and 120 thousand tons of jet fuel annually to the Egyptian Petroleum Authority facilities in repayment.

Petroleum Ministry official said that due to the magnitude of the contracted volumes, which up to four million barrels per month, it makes sense that Egypt gets payment facilities.

Refining Iraqi crude oil in by Egyptian refinery plants contributes in the provision of 7 thousand tons per day of diesel fuel, 5 thousand tons of gasoline per month in addition to the amount of diesel fuel needed for power plants.

Vice President of the Egyptian General Petroleum Corporation (government) for Operations, Engineer Amro Mostafa said that the Egyptian refineries are currently operating at about 75% of its production capacity, as a result of the shortage of crude oil.

Mustafa said in remarks made during his participation in the economic conference in Cairo last November that the total energy of the Egyptian coefficient is 35 million tons of refining, but it is currently refining 25 to 26 million tons, he said.

Egypt has 12 refineries and is currently implementing a plan for the development of these plants at an investment cost estimated at $ 18 billion.

Source: Shafaq News 2015