The Egyptian government is currently involved in negotiations with Emirates to sign a new agreement to secure the needs of local market of petroleum derivatives during the second half of the current year, with payment facilities, according to an official.

Under the new agreement, the Emirati side shall supply petroleum derivatives worth USD 2bn to Egypt, which will be offered payment facilities with a grace period, the official said.

Meanwhile, sources told Al Mal newspaper that not only does Egypt negotiate with the United Arab Emirates but also with Kuwait and Saudi Arabia. Egypt seeks to intensify cooperation with these countries to carry out a number of oil projects and support its local market.

The official pointed out that the UAE has supplied oil derivatives amounting to USD 2.1bn to cover the needs of local market since January 2015 until the end of June.

Egypt is intensifying its efforts in negotiating with the Emirati side since the deal sealed with it, which started in January, will end this month, according to the official.

Under the new deal, Emirates is committed to fully supply the quantities agreed upon without any delay or reduction, the official said, adding supplying oil products is ongoing on schedule.

Source: Al Mal