This image will be automatically disabled when it gets reported by several people.
Negotiations ongoing with Qatar, Iraq over energy imports: Oil minister Egypt's oil minister says negotiations over much needed energy imports will be finalised soon
Negotiations between Egypt and Qatar over a gas swap deal and Iraq over oil imports are ongoing and will "soon" be finalised, Egyptian Oil Minister Sherif Haddara said Thursday. Egypt, which is suffering from energy shortages and power cuts, is struggling to secure local market needs amidst a foreign currency crisis sparked by political turmoil since the overthrow of Hosni Mubarak, leaving the government cash-strapped and foreign reserves at critical levels. "Communications are open with them," Haddara said in his first press conference at the ministry headquarters."These are big deals and need time. Soon we will hear that they are done." Media reports said negotiations have stalled due to disagreements over payment-related issues. Under the arrangement with Qatar, that should have begun late May, Egypt will buy the share of foreign companies in locally extracted liquid natural gas (LNG). The foreign companies will then take LNG imported from Qatar. However, both countries disagree over the extension of a grace period. Iraq is planning to supply Egypt with four million barrels of oil per month starting June, but Bloomberg reported Iraq is asking for a $1.2 billion guarantee from an international bank because of the deterioration in Egypt's credit rating. A senior oil ministry official told reporters on the sidelines of the minister's press conference that discussions are underway on creating credit lines. The official added that the first shipment of Libyan oil — one million barrels — will arrive in the first week of June. Haddara said that there is full cooperation with the Ministry of Electricity with regards to the increasing power cuts the country is experiencing. In an official statement, the Ministry of Electricty ascribed recent power outages to "fuel shortages that have made it difficult for allocated generators to keep up with mounting consumption." http://english.ahram.org.eg/News/72151.aspx
