CAIRO: The United Arab Emirates agreed to grant the Egyptian General Petroleum Authority (EGPC) a soft loan to providing the citizens’ increasing need of petroleum products from UAE and other countries, executive head of EGPC Tarek Al-Mullah told Al-Masry Al-Youm Wednesday.
The loan, worth $9 billion, will be released next week as a one-year term for purchasing just petroleum products, Mullah said.
This is reasonable time to receive a loan, he said since Saudi Arabia petroleum products will stop by the end of August. The Egyptian government will direct the total amount of loans to purchase oil freights and repay part of foreign petrol companies’ their due debts to keep the rate of import and meet the citizens’ growing need.
President Abdel Fatah al-Sisi ordered the government mid-Aug. to provide the needed sums for the Ministry of Petroleum to repay their foreign petroleum partners’ due debts, which totals at $6 billion, before the end of 2014, Al-Mal Business daily reported Aug.13.
Over the past few years of political unrest and public turmoil, some foreign companies have not been paid for four years, which pushed such companies to limit exploration and production activities.
Minister of Petroleum Sherif Ismail announced that Egypt’s daily consumption of oil products, including natural and liquefied gas, is up to 2.1 million barrels, leaving a daily shortage of more than 500,000 barrels. Egypt tried to find alternate sources of oil to meet the citizens’ growing need, Al-Masry Al-Youm reported mid-July.
“Such sources include promoting import, boosting national production, and addressing new and renewable energy sources,” he said.