Saudi Aramco resumes refined oil shipment to Egypt

Saudi Arabia: Aramco to Keep Spare Capacity in IPO
– Egyptian spokesman confirms products beginning to arrive
– Saudi Aramco resumed supplying refined oil to Egypt one day after the Kingdom’s oil giant reportedly suspended oil products to its neighbor, an Egyptian official said Tuesday, reported Anadolu Agency.

Shipments of refined oil and oil products have started to reach Egypt, Hamdi Abdulaziz, a spokesman for Egyptian General Petroleum Corporation (EGPC) said in a written statement.

The two countries signed a $23 billion deal in April for Aramco to deliver 700,000 tons of petroleum products to Egypt every month for the next five years.

However, reports emerged Monday that Egypt has not yet received shipments.

An Aramco official immediately refuted the reports Monday and said the Saudi company is obligated to honor the contract and that the delay in shipments is temporary, according to the Saudi news website Al-Mnatiq.

Egypt is expected to ease its energy needs and improve its battered economy through the deal, according to experts.

Since last May, the country has been purchased 400,000 tons of kerosene, 200,000 tons of gasoline and 100,000 tons of diesel from Aramco.