Council of ministers is currently considering a request by the Iraqi government for receiving financial guarantees from the Central Bank of Egypt, worth 1.2 billion dollars, as revealed by the Government officials. For supplying 4 million barrels of crude oil per month, this initiative has been taken into consideration.
On Thursday, May 7th, the officials told that such financial guarantees have been demanded by Iraq in order to activate the agreement between the two countries. The amount that has been requested by Iraq is around 1.2 billion dollars.
It has to be noted that Iraq agreed with Egypt in order to export oil of 4 million barrels on the month of March from Basra through state oil marketing company’s supervision. The official also revealed, "Iraq agreed to Egypt on the facility to pay for oil shipments for a period of three months only."
However, it has been also revealed that Egypt Petroleum Corporation has requested Iraq for obtaining oil facilities for 9 months. This agreement will similar to the agreement with the Kuwait Petroleum Corporation. Though, due to some financial obligations, Iraqi side did not agree on such contracts with Egypt Petroleum Corporation.
According to the official, "the Egyptian Cabinet will discuss how to provide these guarantees during its next meeting to initiate a sales agreement to Egyptian refineries."
The agreement includes these quantities in refining plants and those Egypt needs of gasoline and diesel for the refining process. To provide Basra refinery plants in Egypt will produce between 4 thousand ton diesel and 3,000 tons of gasoline daily.
Minister of petroleum and mineral resources of Egyptian Osama Kamal stated that the negotiations are still going on between the two parties and results are expected soon. 38000 tonnes diesel is the daily consumption of Egypt and 22000 tonnes are imported to aboard daily.
Updated 09 May 2013 | Soruce: Mubasher |