The Egyptian government has reached an agreement with Azerbaijan on refining 500,000 barrels of crude oil a month in the Egyptian refineries, and exchanging Egypt’s naphtha with petrol 95.
In statements to Al Mal newspaper, the head of Egyptian General Petroleum Corporation (EGPC) Mohamed Al Masry said that the agreement aims at using spare refining capacity in Egyptian refineries against USD 9 for each refined barrel.
Under the deal, Egypt shall receive quantities of petrol 95 equivalent to the dues of refining, amounting to USD 4 – 4.5 mn, he explained, adding that the agreement is under the auspices of the Government and will be put in force.
Meanwhile, sources at EGPC told Al Mal that the agreement with Azerbaijan is to be operationalized soon, adding the capacity of oil refineries has increased to 28 million tons a year, from 26 million tons.
The idle capacities of Egyptian oil refineries will be used to implement the agreement with Azerbaijan, the sources said, adding EGPC keeps implementing its plan to develop refining plants in order to boost oil derivative production.
(Source: Al Mal News)