Egypt is mulling an official inquiry to find out why Saudi Arabia suspended delivery of oil shipments for October, according to media reports.
In a meeting scheduled for Sunday, the Egyptian parliament will specify its requirements from the Egyptian General Petroleum Corporation (EGPC) about the details of the agreement with Aramco.
Hamada Ghallab, a member of the Egyptian Energy Committee that has been tasked with leading the enquiry, has said relations between Cairo and Riyadh are strong and that his entity will find out the reasons behind the October non-delivery and gauge the scenario for the November shipment.
Ghallab explained that the committee will request that the Egyptian Ministry of Petroleum encourage foreign companies to increase their investments in the oilfields to increase production in exchange for providing facilities, such as paying for the foreign partner’s share in US dollars or allowing them to transfer profits abroad.
The foreign partner obtains a 45-50% share of the production, according to the agreement signed with the Ministry of Petroleum.
According to Daily News Egypt, Aramco has not officially informed them about the resumption of shipments in November.
Therefore, the ministry will offer a precautionary tender for the quantities signed with the Saudi company, as no supplies have been received as of yet.
