Saudi Arabia is to meet Egypt's oil needs for a five-year period, increasing the quantity of imported oil from 500,000 tons per year to 700,000, according to a senior government official.
The deal, which is valued at about US$23 billion, was the result of detailed negotiations over the past few days, the official said.
Egypt will pay for the oil in installments at an interest rate of 2 percent, with a one-year grace period on payments.
The Egyptian Petroleum Authority will pay the money into a sovereign fund owned by the kingdom, said the official.
Egypt and Saudi Arabia also agreed to hold the fifth session of the Egyptian-Saudi Coordination Council on March 10 in Riyadh. The meeting will be headed by Prime Minister Sherif Ismail and Prince Mohammed bin Salman, the Crown Prince of Saudi Arabia.
The meeting will prepare for a later meeting between President Abdel Fattah al-Sisi and King Salman bin Abdel Aziz.
Edited translation from Al-Masry Al-Youm
