Iraq calls for Egypt with $ 1.2 billion of financial guarantees for the supply of crude oil

BAGHDAD / follow the obelisk: Egyptian government official said, that the Council of Ministers is currently studying in a request made ​​by the Iraqi government to obtain financial guarantees from the Central Bank of Egypt, $ 1.2 billion, for the supply of 4 million barrels of crude oil per month.

He explained that "Iraq's request for such financial guarantees to activate the agreement between the two countries since last March."

"The value of the guarantees requested by the Iraqi government of Egypt ($ 1.2 billion), representing supply dues for a period of three months."

Iraq agreed last March to supply four million barrels of crude oil per month from Basra by the State Oil Marketing Company, under the facility to pay for oil shipments for a period of three months only.

The Egyptian Petroleum Authority has asked Iraq to obtain facilities for a period of 9 months, similar to the agreement signed with Kuwait Petroleum Corporation (KPC), but the Iraqi side refused, citing the lack of a similar agreement with any international parties, because of the financial obligations imposed on it.

The official said, "the Council of Ministers will discuss how to provide these guarantees during its next meeting to speed up the start of activation crude supply agreement for Egyptian refineries."

The agreement includes these quantities refining labs for Egypt and Egyptian on the needs of diesel fuel and fuel oil resulting from the refining process, and Iraq's access to gasoline, as Egypt does not need with access to exchange Egyptian crude refining labs.

It is scheduled to provide the Basra refinery in the Egyptian laboratories between 4 thousand tons of diesel and 3 thousand tons of gasoline per day.

The daily consumption of diesel Egypt about 38 thousand tons are imported 22 thousand tons of them from abroad, while the consumption of gasoline is 16 thousand tons are imported 10% of them from abroad.