Saudi Arabia to supply Egypt with petroleum products under $23 bln deal

Saudi Aramco will provide Egypt with 700,000 tons of petroleum products a month over five years under a $23 billion agreement with the Egyptian General Petroleum Corp. (EGPC), Reuters reported, citing unnamed Egyptian official.

"The Saudi Fund for Development will pay Aramco for the petroleum products directly, and receive in return the amount from Egypt in installments," the source told Reuters.

The financing for the deal will have an interest rate of 2 percent and will be repaid over 15 years, the source added.

Under the deal, Saudi Aramco will supply Egypt with 400,000 tons of gas oil, 200,000 tons of benzene, and 100,000 tons of Mazut, the source said.

The deal is part of financial support for Egypt announced during a visit this month by Saudi Arabia's King Salman.

Saudi Arabia, along with other Gulf oil producers, has pumped billions of dollars, into Egypt's economy since the toppling of President Hosni Mubarak in 2011.