Since May 2016, Egypt has received oil cargos from Saudi Aramco worth $1.2b. Egypt received 700,000t of petrol every month for the last 4 months, reported Al Borsa. The Egyptian Minister of Petroleum, Tarek El Molla stated that the paid amount was decided every month according to the global prices at the time of shipment arrival to Egyptian ports.
El Molla added that Aramco did not officially declare when it will be resuming oil cargos to Egypt according to the signed contract that covers 5 years, starting May 2016. Furthermore, the Saudi oil giant did not inform the ministry that it is halting its shipments either. The total cost of Aramco’s shipments over the five years contract period is expected to reach $30b if the petroleum global prices continues to decrease.
Accordingly, the Egyptian General Petroleum Corporation (EGPC) launched a tender to import enough fuel to cover domestic demands during November as an alternative for Aramco’s shipments.