UAE to ship petroleum products worth US$9 billion to Egypt

barrelThe UAE would provide Egypt with petroleum products period starting September 2014. (Image source: Barekim/Flickr)The UAE will provide about US$9bn worth of petroleum products to Egypt over the next year, according to Egyptian Oil Ministry

Hamdy Abdelaziz, Ministry spokesperson, said that the contract between state-run Egyptian General Petroleum Company (EGPC) and Abu Dhabi National Oil Company (ADNOC) would contribute to meeting part of Egypt’s petroleum needs.

Egypt has been struggling to curb its swelling budget deficit and meet soaring energy demands, which have resulted in daily electricity cuts around the country of 86mn people, local reports stated.

An Egyptian official told Reuters that the UAE would provide Egypt with petroleum products period starting this month.

He added that some of the petroleum products would comes as grants and the remainder under a credit agreement that would be repaid in installments. The North African country currently imports petroleum products worth around US$1bn to US$$1.3bn a month.

The UAE, Saudi Arabia and Kuwait have together provided Egypt with more than US$20bn in grants, loans and petroleum products already.

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