Monday 21 December 2020
Last update on Monday, December 21, 2020 At 12:49 PM
Egypt is committed to implementing as soon as possible the development agreements signed with Iraq last October, to strengthen bilateral cooperation between the two parties. Under the terms of the agreement, Cairo will execute these projects in Iraq, in exchange for petroleum products.
Mostafa Madbouly, Prime Minister of Egypt announced that the execution of the oil agreements signed between the government and Iraq last month will be effective as soon as the constitutional procedures are completed. These are 15 agreements, some of which relate to the implementation by Egypt of oil development projects on Iraqi territory, in exchange for oil products.
The other areas covered by the agreement are judicial training, water resources, health, environmental protection, maritime logistics, road infrastructure etc. Cairo says it is ready to overcome any measures that could hinder the immediate activation of the collaboration and is committed to preparing a presidential directive to form a permanent project monitoring committee.
This interest from Egypt is explained by the demand for petroleum products at the local level which continues to rise, while the domestic supply is insufficient to satisfy it. The arrival of Iraqi supplies will be a major breath of fresh air that will also allow the country to save money on its purchases of petroleum products.
According to Tarek El-Molla, Egyptian Minister of Petroleum, Iraqi imports of petroleum products into Egypt fell by 46% in the first quarter of fiscal year 2020-2021. This is due to the coronavirus crisis which has negatively affected activities linked to the entire value chain of the sector.
The development of Egyptian-Iraqi relations in the oil sector started three years ago. This, when Egypt’s traditional supplier of hydrocarbons, Saudi Arabia blocked deliveries for lack of effective economic reforms by the Egyptian side to revive its economy.
Source Ecofin Agency
