Egypt will receive a second shipment of Iraqi crude oil of 2m barrels in two weeks. An official at the Egyptian General Petroleum Corporation (EGPC) told Daily News Egypt that the agreement with the Iraqi side includes the supply of 2m barrels every two months for a year, on soft terms of payment and a grace period of 90 days. Egypt had reached an agreement with Iraq to obtain 12m barrels of oil from Basra for a year. Egypt received the first shipment of Iraqi oil in February. Head of EGPC Abed Ezz El Regal said that shipments of imported Iraqi crude oil were being pumped into local refineries for conversion into oil products. He noted that the payments are in accordance with the terms of the contract without delay, which applies to the new contract, which was activated starting in 2018, giving Egypt 12m barrels of crude oil. He pointed out that the oil sector is moving in the right direction, and an ambitious plan is being implemented to provide the country's oil and gas needs through enhancing research and exploration activities, especially after signing 83 oil agreements. This shows the size of the petroleum sector's response to improving the terms of the agreements. He stressed the commitment of the government to regularise the payment of foreign partners' entitlements and to provide an attractive work environment to facilitate and develop business. "Egypt will continue to appreciate the role of its partners, who have provided a good example of fulfilling their commitments and programmes of work during the last period," he added. The Ministry of Petroleum seeks to secure Egypt's fuel needs through the conclusion of several government agreements to import oil. Egypt and Saudi Arabia signed an agreement between the EGPC and Saudi Aramco in April 2016. The agreement stipulates that Aramco supply 700,000 tonnes of petroleum products to Egypt every month in a five-year contract worth $23bn. The agreement was signed during an official visit of King Salman bin Abdulaziz Al Saud to Egypt in April 2016. According to the agreement, Egypt will receive 400,000 tonnes of diesel, 200,000 tonnes of gasoline, and 100,000 tonnes of fuel oil. This comes with an interest of 2%, while repayment for shipments extends over 15 years.
