A government source informed Egypt Oil & Gas that the Cabinet is considering fuel suppliers offers to import oil from Iraq starting from January 2016. This was especially in light of the fuel crisis that periodically returns as over the past two months. This includes importing 2m barrels of crude oil, over a 12 month period, which will then be refined in Egypt. Noting that Egyptian refineries are operating at only 60% of their capacity.

The source added that the resumption of negotiations came after the Iraqi side conceded one of its intransigent conditions, namely, to place a billion dollars in an international bank to ensure their financial arrears, which is the value of 3 months worth of shipments, and before the formal signing of the agreement.

The source explained that the government wants to bolster its strategic reserve of gasoline and diesel to last 25 days, before the onset of winter and before the standardization of the second phase of smart cards system for the remaining provinces in the new year.