Release date: 2017/4/6
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Egyptian Minister of Petroleum and Mineral Resources Tariq Al-Mulla stressed that there are no obstacles hindering the agreement with the Iraqi side to supply one million barrels of crude per month and that the negotiations are in place and the contract will be signed soon.
The Egyptian oil minister said in a statement on Thursday that "he met with Habib al-Sadr, the Iraqi ambassador in Cairo yesterday and discussed the latest developments regarding the signing of the contract."
Mulla stressed the importance of strategic cooperation between the two brotherly countries, which aims to increase the fields of joint cooperation and exchange of experiences in various petroleum industries, including research and exploration, oil and natural gas production, development and maintenance of infrastructure, construction of pipelines and networks of transport of crude oil, petroleum products and natural gas. And rehabilitation of human cadres in the petroleum industry.
The Egyptian newspaper Al-Maal quoted unnamed government sources Thursday as saying that Egypt had decided not to complete a deal to import 1 million barrels of crude oil from Iraq per month due to a lack of agreement on the grace period and the resumption of Saudi Aramco's supply of petroleum products.
Egypt agreed with Iraq last February to import 1 million barrels of crude oil per month for one year from March 1 initially, but the agreement did not sign and did not arrive any shipments of Iraqi oil to Egypt last month.
"Egypt has asked Iraq to give it a year to pay the price of Basra crude, but Iraq has only agreed to 90 days, something that has not been accepted by the government," the source said.
Saudi Aramco, the world's largest oil company, returned to supply Egypt with about 700,000 tons of oil a month at the end of March after it stopped in October for a political row between the two countries over the Syrian crisis.
Egyptian Oil Minister Tariq al-Mulla told Reuters in March that "the agreement to import oil from Iraq will remain and was not a substitute for the suspension of shipments of Aramco."