Monday, November 07, 2016

Egypt meeting with iran for oil, flirting with the Assad regime and facing trade difficulties with Saud Arabia over oil supplies

The Saudi deal was for 700,000 tonnes of oil products a month for five years under a $23 billion deal between Saudi Aramco and the Egyptian General Petroleum Corporation (EGPC) to be paid off over 15 years.
Molla is set to meet several senior Iranian officials to discuss the possibility of securing oil supplies from Tehran, one source, who accompanied Molla to the airport, said.
His visit to Iran, Saudi Arabia's main regional rival, may signal a further rift between Egypt and its top benefactor.
Molla said last month it was unclear when the Saudi oil deliveries would resume and Saudi Arabia has provided no reason for their suspension.
Egypt has since worked to secure new energy sources, signing a memorandum of understanding last week with Azerbaijan's state oil company SOCAR for up to 2 million barrels of crude oil.
The EGPC last week signed a farm-out agreement with Kuwait Energy Plc giving Egypt's state oil buyer a 20-percent participating interest in its Siba field in Iraq...."

bth: combine this with the collapse in currency and commodities hording. Also Egypt sent army team to observe in Syria on behalf of Iran and Assad.  Muslim Brotherhood has not friends with the current Egyptian government and MB had sponsorship from Turkey which has close alliances with the Sunni Arab rebels in Syria. The move to send representatives to Iran to discuss oil is quite extraordinary as hostility between Iran and Egypt goes a long way back to at least the Sadat years.  One thing that surprises me is that the Egyptians have not moved to take some oil fields from Libya which has fallen apart and yet has huge resources the Egyptian could use.

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