(Ecofin Agency) - Egypt is looking to reach an agreement with Iraq regarding the direct import of crude oil from the country and hopes to conclude the deal by Q1 of 2017, Petroleum Minister Tarek El Molla (photo) revealed.

This is coming after Saudi Arabia informed Egypt last month that shipments of oil products expected under a $23 billion aid deal had been halted until further notice.

According to El Molla, Egypt is planning to import between 1 million and 2 million barrels per month from Iraq.

“We are seeking to directly import crude oil from Iraq. We already use Iraqi oil but we get it from international markets but we hope to have a direct government to government agreement,” he said on the sideline of a meeting of the Organization of Arab Petroleum Exporting Countries (OAPEC)

Egypt which was once an exporter energy has become a net energy importer in recent years, as a result of declining production and increasing consumption. Cairo is currently seeking other solutions so as to help the country cope, Reuters reports.

Anita Fatunji