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Oil Export to Egypt Will Improve Relations

Oil Export to Egypt Will Improve RelationsOil Export to Egypt Will Improve Relations

Iran is ready to sell oil and its byproducts to Egypt, deputy oil minister for international affairs said on Sunday.

"Commencing oil trade with Egypt will definitely have a positive effect on improving relations between the two states, which were tarnished by political tensions," Amirhossein Zamaninia was quoted as saying by Mehr News Agency.

Stressing that Iran intends to establish close relations with regional countries, the official hoped that crude export can pave the way for restoring political relations with other states.

Underscoring the fact that there is no restriction on selling oil to Egypt, Zamaninia said, "The National Iranian Oil Company will consider Egypt's proposals favorably if they are presented officially."

According to Seyyed Mohsen Qamsari, National Iranian Oil Company's deputy for international affairs, more crude will transit to Europe through the 320-km Sumed pipeline, running from the Red Sea to the port west of Alexandria.

"Sanctions imposed on Iran have hit revenues for the Sumed pipeline. The pipeline runs from the Gulf of Suez to the Mediterranean Sea, allowing crude oil to bypass the Suez Canal. Once nuclear sanctions against Iran are lifted, the return of Iranian oil could help boost Sumed revenues and compensate for losses in recent years," Egypt's Oil Minister Sherif Ismail stated in an interview with Egypt's state-owned daily Al-Ahram.

Sherif Sousa, Egypt's deputy oil and natural resources minister also attended the Third Gas Exporting Countries Forum Summit in Tehran last Monday, which can be interpreted as a new chapter in oil and gas relations between the two states whose ties turned hostile following the victory of Islamic Revolution in Iran in 1979.

The Sumed pipeline (aka Suez-Mediterranean pipeline) is an oil pipeline in Egypt, running from the Ain Sukhna terminal on the Gulf of Suez to offshore Sidi Kerir, Alexandria, on the Mediterranean Sea. It provides an alternative to the Suez Canal for transporting oil from the Persian Gulf region to the Mediterranean.

 

Financialtribune.com