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|12 February, 2019

Saudi Aramco and Egypt's SUMED sign oil deals - ministry

Agreement signed to provide 222,000 cubic metres of gas oil storage capacity in Sidi Kerir for re-export to Europe

Image used for illustrative purpose. Crude oil storage tanks are seen from above at the Cushing oil hub, appearing to run out of space to contain a historic supply glut that has hammered prices, in Cushing, Oklahoma, March 24, 2016.

Image used for illustrative purpose. Crude oil storage tanks are seen from above at the Cushing oil hub, appearing to run out of space to contain a historic supply glut that has hammered prices, in Cushing, Oklahoma, March 24, 2016.

REUTERS/Nick Oxford

CAIRO  - Saudi Aramco's trading arm, Aramco Trading Company (ATC), signed a deal with Egypt's SUMED to provide 222,000 cubic metres of gas oil storage capacity in Sidi Kerir for re-export to Europe, Egypt's petroleum ministry said in a statement on Tuesday.

The companies also signed a second deal to supply fuel oil storage capacity of 165,000 cubic metres in the Red Sea port of Ain Sokhna, the statement said.

That deal may include re-exporting and supplying fuel oil to power plants in Saudi Arabia, meeting the needs of the Egyptian market and providing fuel to ships in the region, according to the statement.

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SUMED is 50 percent owned by the Egyptian government and the rest is held by Arab oil exporters in the Gulf.

The deals were signed on the sidelines of an energy forum in Cairo.

(Reporting by Ehab Farouk, writing by Lena Masri, editing by Louise Heavens and editing by John Stonestreet) ((Lena.Masri@thomsonreuters.com;))

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