Saudi Aramco has agreed to extend its oil supply agreement with Egypt to supply the North African country’s refiners with crude for six more months, Cairo’s Petroleum Minister Tarek El-Molla has said.
Aramco is already supplying crude to Egypt since January as part of the supply deal.
The Saudi oil giant will continue shipping cargoes containing 500,000 to 1 million barrels a month from July until the end of the year.
Egypt’s refineries previously received crude oil from the Saudi oil producer in November and December last year.
Cairo has also renewed a deal with Iraq to buy 12 million barrels of crude for a year.
Once a key exporter of oil, Egypt now relies on imports of crude to fuel its economy.
The licensing round of 11 oil exploration blocks launched by the state-run Egyptian General Petroleum Corporation on 21 May however presents a scenario of international upstream players discovering recoverable crude reserves that could help Egypt meet oil demand and end reliance on imports.
A MEED Subscription...
Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.