As part of the five-year agreement that Egypt has with Saudi Arabia to contribute to supplying the country’s fuel needs, Egypt has received shipments of petroleum products worth approximately $650m in May and June 2016 from Riyadh. The shipment includes benzene, diesel, and mazut products, reported Daily News Egypt.
The Egyptian Minister of Petroleum, Tarek El Molla, explained that Egypt has received petroleum shipments worth $300m in May and the value of the fuel shipments received in June is expected to increase to $350m due to the international increase in oil prices.
According to Al Bawaba Business, the five-year agreement, that was signed between the Egyptian Ministry of Petroleum and Saudi Arabia’s Aramco, includes supplying Egypt with petroleum derivatives for five years, starting May 2016, at an interest rate of 2% and a grace period of a minimum of 3 years. The total value of these shipments is expected to amount to $30b amid global low oil prices.
According to El Molla, Egypt’s average monthly consumption of petroleum products and natural gas stands at 6.5m tons, of which 4.2m tons are domestically produced and 2.3m tons are imported. The country aims to increase its daily crude oil production from 695,000 barrels to 700,000 barrels during the coming fiscal year.