Egypt Pays $2.1B To Foreign Energy Firms, Still Owes $3.1B

Reuters

CAIRO, Dec 31 (Reuters) - Egypt paid $2.1 billion of its debt to foreign energy companies, Oil Minister Sherif Ismail said on Wednesday, a move that could improve the investment climate and ease the country's worst energy crisis in decades.

The payment was the third batch to energy firms in the past year, though the government still owes $3.1 billion, Ismail said in a statement.

The statement did not identify the amounts specific companies would receive, but the foreign firms owed money by the Egyptian government include British majors BP and BG, the UAE's Dana Gas, and Italy's Eni.

Egypt has delayed payments to oil and gas firms as its economy has been hammered by almost four years of instability since a popular uprising ousted autocrat Hosni Mubarak.

Arrears began to accumulate before the revolt, but worsening state finances saw the debts mount to billions of dollars while the government diverted gas earmarked for export to meet domestic demand.

Mounting debt has hampered investment in the energy sector, though recent moves by the government to address the issue has begun to improve energy firms' confidence in Egypt.

Egypt made payments of $1.5 billion in December 2013, and $1.4 billion in October 2014 and said in November that it intends to repay all its debt within six months.

British oil major BP has announced a $12 billion investment in Egypt over the next five years and the president of BG Egypt said he was confident the government was doing its best to improve investment prospects.

(Reporting by Shadi Bushra; editing by Michael Georgy)

Copyright 2016 Thomson Reuters. Click for Restrictions.

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE



Most Popular Articles

From the Career Center
Jobs that may interest you
Expeditor
Expertise: Driller|Logistics Management|Materials Management
Location: Anchorage, AK
 
Rail Technical Manager Americas
Expertise: Logistics Management
Location: Houston, TX
 
Distribution Center Driver
Expertise: Logistics Management
Location: Vernon Packaging Plant, 
 
search for more jobs

Brent Crude Oil : $54.46/BBL 0.96%
Light Crude Oil : $51.68/BBL 1.21%
Natural Gas : $3.44/MMBtu 1.99%
Updated in last 24 hours