After renewing their oil deal last August, Iraq and Egypt agreed to a new renewal early in the first quarter of 2021, for the remainder of the year. This time around, it will be 12 million barrels per year, at a rate of one million per month.
The Iraqi government has just approved the renewal of the agreement to supply 12 million barrels of light crude oil to Egypt’s state-owned petroleum company (EGPC) at a rate of one million barrels per month. The deal will be effective early in the first quarter of next year.
The last renewal of this contract was recorded last August, for a period of six months.
In details provided by Iraqi news agency INA, the terms of the contract will remain unchanged, provided Egypt pays the value of oil deliveries within the year.
In a parallel agreement signed last October between the two parties, Egyptian companies will implement development projects in Baghdad in exchange for supplying oil to Cairo. A few days ago, the two countries expressed their willingness to step up this crucial part of their cooperation. Indeed, Egypt is facing a weak domestic supply of petroleum products while demand is one of the highest in the region.
Iraq, for its part, has a pressing need for road infrastructure in order to revive its economy.
Source Ecofin Agency