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Egypt receives $650m worth of fuel from Saudi Arabia in May and June

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Staff writer ▼ | June 27, 2016
Egypt oil tanker
Energy transport   A commercial contract for five years

Egypt obtained shipments of petroleum products—benzene, diesel, and mazut—worth approximately $650m in May and June, as part of the agreement with Saudi Arabia on supplying part of the country’s fuel needs for five years.

Minister of Petroleum and Mineral Resources Tarek El-Molla told Daily News Egypt that petroleum shipments worth $300m were received in May.

He added that the value of fuel shipments this month will reach $350m, driven by the global increase in oil prices.

He explained that the contract with the Saudi side stipulates calculating the value of petroleum products according to global prices at the time of supply.

The Ministry of Petroleum signed a commercial contract with Saudi Arabia’s Aramco to supply Egypt with petroleum derivatives for five years, starting from last May, at an interest rate of 2% and a grace period of at least three years.

The total cost of these shipments is expected to amount to $30bn amid low global oil prices.

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