Egypt is moving closer to restarting oil imports from Iraq as negotiations reach their final stages. The country aims to resume its annual purchase of 12 million barrels of Basra Light crude starting in the third quarter. This move signals a potential resolution to an 18-month suspension caused by payment disputes.
Previously, Iraq suspended the oil agreement due to disagreements over payment terms. However, both sides have pushed to overcome these financial obstacles. A government source confirmed that talks now focus on offering flexible payment options to Egypt. These terms would allow Egypt’s General Petroleum Corporation to pay three months after receiving each shipment.
This oil deal revival benefits both Egypt and Iraq. Egypt secures energy supplies to meet growing demand. Iraq, in turn, strengthens its energy trade and reinforces ties with a key regional partner. Moreover, the agreement contributes to broader regional cooperation in the energy sector.
Originally, Egypt and Iraq signed the oil import deal in 2017. The agreement included six shipments per year, each consisting of two million barrels. Although they renewed the contract yearly, Iraq halted exports at the end of 2023. Now, with negotiations nearly complete, both countries expect a restart soon.
Iraq’s State Oil Marketing Organization (SOMO) and Egypt’s General Petroleum Corporation continue to finalize technical and financial details. Once completed, the contract will reopen one of the region’s critical oil supply channels.
Furthermore, the energy relationship between Egypt and Iraq shows a clear example of regional interdependence. It also highlights the importance of oil trade in stabilizing economies. As global oil markets remain volatile, such agreements offer economic and strategic advantages.
Looking ahead, both countries plan to strengthen cooperation through reliable and consistent energy flows. The success of this agreement could lead to new partnerships and long-term commitments in oil and gas.
In conclusion, Egypt’s move to resume Iraq oil imports shows growing trust and economic collaboration. It also emphasizes Iraq oil imports as a vital focus for regional energy strategies.