By Ahmed Talaba
The UAE and Egypt will next week finalise for the former to provide finance for Egypt’s petroleum projects needs for one year, said an official at the Egyptian General Petroleum Corporation (EGPC).
The official added in statements to Al-Borsa that the agreement entails UAE providing Egypt with diesel, fuel oil, petrol, and butane gas at a value of $800m monthly. The agreement will begin in September, ending in August 2015.
He pointed out that the agreement, worth $9bn, is neither a grant nor part of the aid package the UAE and Saudi Arabia are obliged to provide to Egypt. The agreement is, instead, a commercial one, which Egypt will repay through quarterly instalments after a one-year grace period.
The official added that the EGPC sent a proposed schedule to the UAE detailing the required amounts, types, and timing for fuel supplies to be delivered to Egypt’s ports.
The source explained that the agreement does not conflict with the negotiations that are underway with Saudi Arabia regarding a new aid package requested by Egypt’s petroleum sector. The new package will cover other aspects of the sector’s needs. An agreement on procedures for this package is expected to be finalised next month.