Adviser to the Prime Minister: oil agreement will revive economic relations between Iraq and Egypt
Baghdad / Zahraa Hamid
The Ministry of Petroleum and the Egyptian Mineral Resources, confirmed early last January that the Egyptian government asked their Iraqi counterparts to activate an agreement for the supply of one million barrels of Basra crude for refining in its refineries, pointing out that the agreement was supposed to come into effect early this year.
He says the appearance of Mohammed Saleh, the financial advisor to the prime minister, told the (range) that " the contract to provide Egypt with crude oil from strategic contracts that go beyond the commercial dimension, and the adoption of Egyptian refineries on Iraqi crude is an important issue for the stability of Iraq supplies in the long term."
High government adviser said that "oil cooperation with Egypt is an important signal for regional cooperation between Iraq and the Arab world, and reflects at the same time, the desire of the Arab Republic of Egypt in cooperation with Iraq in the trade and investment fields."
Saleh and predicted that "revives the agreement of economic relations and promote economic cooperation between the countries in the region to achieve development that serves both sides , " stressing that "Iraq is serious about expanding international economic cooperation that leads to achieve understandings to solve international problems and face the dangers which confront terrorism."
In the same context, oil expert Dergham Mohammed told (range), "Iraq has found a new customer for the purchase of oil after the Iraqi agreement - the Egyptian on the supply of oil to Cairo , " noting that " the Egyptian market is one of the consumer markets and characterized by geographic location is important and proximity to customers Asians and Europeans. "
He noted oil expert that "Egypt monitors annually large sums of money to support the energy sector, and thus will be able to secure the amount of oil payments, and get to secure deals for Military Industries for weapons and ammunition Egyptian agreements, in addition to the advantage of their company 's holding in the reconstruction of liberated areas of Iraq."
And between Muhammad that "Asian and European markets are customers semi - permanent Iraqi oil, and constitute the oil markets , opportunities for competition for producers oilfields under a glut of global oil supply, so the Egyptian market will be a good addition to customers Iraq and the market is expanding each year and absorb extra oil exports in light of the need for energy impact of growth population and rapid investment in it . "
But observers Iraqis expressed their fear of the Egyptian side 's inability to fulfill its financial obligations due to financial distress suffered by Egypt.
Iraq is expected to visit this month, an Egyptian delegation oil to agree on a final draft of the agreement to import crude oil, where Egypt is seeking to import between one million to two million barrels per month of Iraqi crude oil.
The Iraq and Egypt agreed last year to supply a million barrels of Basra crude for refining in the refineries Cairo, at a time when Egyptian companies working in the areas of Basra , oil and gas.
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