Egypt is mulling renewing Iraqi oil imports for the third time in a row

Wednesday 11 July 2018 05:45 PM


By Nesma Bayemi
Egyptian General Petroleum Company is mulling the renewal of Iraqi raw oil imports next year for the third time in a row, according to a governmental source.
Back in 2017, EGPC signed off a one-year contract with Iraq-based Sumo Company importing 12mln oil barrels from Al-Basra raw oil at a three-month repayment facility.
Through renewing the contract for the second time early 2018 without altering conditions nor quantities, Egypt received 3 shipments totaling 6mln barrels  up till now as of last February.
" Any study into renewing the contract for the third time with Iraq will take into consideration how much the domestic market needs oil derivatives," informed source told Al-Mal newspaper, adding that the grace period for repayment may be extended to 6 months and quantities could be multiplied.  
On the same vein, the source predicted the fourth oil shipment of Al-Basra amounting to 2mln barrels to arrive in Egypt within days, driving up quantities received by Egypt to 66% of contract.
Egypt's oil contract with Iraq helped meet large chunk of oil derivatives needs during the previous two years.
Egypt  has also a raw oil contract with Kuwait amounting to 2mln barrels per month at 270-day grace period for repayment.
Regarding oil derivatives, the government has two contracts, the first one with the Saudi-based Aramco amounting to 700 tonne per month, the second with  Kuwait Petroleum Corporation amounting to 1.5mln tonne per year.