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Iraq offers Egypt 3-month credit for oil deal
29 April 2013 02:53 PM Updated : 29 Apr 2013 02:53 PM
Iraq has agreed in principle to offer Egypt 4 million barrels of crude a month on a three-month credit term, in a move that could ease the fuel shortage that has recently hit the Egyptian economy, officials from the two countries said today.
The officials told Dow Jones Newswires that Baghdad would supply Cairo with 2 shipments of Basra light crude each month at international prices but the payment will be deferred for three months with no interests incurred. The first cargo is expected in Egypt next month once the deal is finalized, they said.
The value of the deal is close to $400 million a month, based on current market prices.
"We were very keen to get the supplies on 9-month credit but the Iraqis said they won't be able to do so," an Egyptian official who asked not to be named said.
An Iraqi official familiar with the matter confirmed the agreement, saying: "Iraq will sell the crude oil to Egypt at normal international prices...Egypt has asked for preferential prices of oil similar, for example, to the prices Iraq is offering to Jordan but so far Iraq has refused."
According to Wall Street Journal, the Egyptian-Iraqi deal comes after Libya agreed in principle to offer Egypt crude supplies worth around $1 billion on a one-year credit term. The two neighbouring countries are still discussing the types of the grade and the quantities of the crude that will be refined in Egypt, but the first shipment is expected next month, an Egyptian oil official said Sunday.
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29 April 2013 02:53 PM Updated : 29 Apr 2013 02:53 PM
Iraq has agreed in principle to offer Egypt 4 million barrels of crude a month on a three-month credit term, in a move that could ease the fuel shortage that has recently hit the Egyptian economy, officials from the two countries said today.
The officials told Dow Jones Newswires that Baghdad would supply Cairo with 2 shipments of Basra light crude each month at international prices but the payment will be deferred for three months with no interests incurred. The first cargo is expected in Egypt next month once the deal is finalized, they said.
The value of the deal is close to $400 million a month, based on current market prices.
"We were very keen to get the supplies on 9-month credit but the Iraqis said they won't be able to do so," an Egyptian official who asked not to be named said.
An Iraqi official familiar with the matter confirmed the agreement, saying: "Iraq will sell the crude oil to Egypt at normal international prices...Egypt has asked for preferential prices of oil similar, for example, to the prices Iraq is offering to Jordan but so far Iraq has refused."
According to Wall Street Journal, the Egyptian-Iraqi deal comes after Libya agreed in principle to offer Egypt crude supplies worth around $1 billion on a one-year credit term. The two neighbouring countries are still discussing the types of the grade and the quantities of the crude that will be refined in Egypt, but the first shipment is expected next month, an Egyptian oil official said Sunday.
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