Egypt to import oil from Libya

Egypt will import 900,000 barrels of oil a month from Libya starting next month and is paying off some of the money it owes to foreign energy firms, its oil minister was quoted as saying yesterday.

Osama Kamal, cited by local media, said Egypt, where an economic crisis has led to fuel shortages, had recently paid $1 billion in debt to foreign energy firms and that another $1bn would be coming in a fortnight.

"The Libyan petrol shipments will arrive next month," Kamal was quoted as saying in Al Borsa newspaper. In Egypt "petrol" is used to refer to crude oil.

The Egyptian government is estimated to owe billions of dollars to oil producers working in the country, though the government last month disputed an estimate that put the debt at $9bn.

On Monday, Libyan Oil Minister Abdul-Bari Al Aroussi said Libya plans to refine some of its crude oil in Egyptian refineries to support the Egyptian economy which is struggling after more than two years of political unrest.

Kamal also said in comments carried by local daily Al Mal he would meet several foreign firms this week to discuss new means to pump additional supplies of gas.