The Iraqi cabinet has approved the renewal of a contract to supply 12 million barrels of Basra light crude oil to the Egyptian General Petroleum Corporation (EGPC) in 2021, said the state-run Iraqi News Agency (INA) on Tuesday.

The terms of the contract will remain unchanged, provided that Egypt pays the value of oil shipments within the year, the cabinet reiterated.

During Egyptian Prime Minister Mostafa Madbouly's visit to Baghdad in late October, Egypt and Iraq agreed on establishing an oil-for-reconstruction mechanism, under which Egyptian companies would implement developmental ventures in Baghdad in return for providing Cairo with quantities of oil.

The Egyptian-Iraqi high committee convened in Baghdad to boost bilateral cooperation. The committee was established in 1988 with the aim of coordinating cooperation frameworks.