Saudi Arabia is expected to provide Egypt’s oil needs for a five-year period, which will increase the quantity of imported oil from 500,000 to 700,000 tons per year, a senior government official told Egypt Independent. The deal is worth about $20b and it marks the Kingdom’s latest display of support for its struggling North African ally, Bloomberg Business reported.
Egypt will pay for the oil in installments at an interest rate of 2%, with a one-year grace period on payments. The senior official also explained that the Egyptian Petroleum Authority will pay the money into a sovereign fund owned by Riyadh.
The two countries had earlier finalized a 3-month oil deal worth $1.5b, which is part of the 5-year agreement.
Additionally, Egypt and Saudi Arabia agreed to hold the fifth session of the Egyptian-Saudi Coordination Council on 10th March in Riyadh between Prime Minister, Sherif Ismail, and Prince Mohammed bin Salman, the Crown Prince of Saudi Arabia, ahead of negotiations between President Abdel Fattah Al-Sisi and King Salman bin Abdel Aziz.