Iraq agrees to supply Egypt with 4 million barrels of oil per month

An official in the Egyptian Ministry of Petroleum said 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.