The Ministry of Petroleum plans to repay a part of its dues—worth $250m—to a number of foreign companies operating in the local petroleum sector by March.
Abed Ezz El Regal, CEO of the Egyptian General Petroleum Corporation (EGPC), told Daily News Egypt that foreign companies received $300m of the ministry’s dues last week.
Egypt’s dues to foreign oil companies totalled $2.4bn at the end of June 2017.
The government’s dues to foreign partners have accumulated due to the delay in paying for oil and gas extraction by foreign companies in the past years.
Ezz El Regal pointed out that the oil sector is on the right path and an ambitious plan is being implemented to provide the country’s oil and gas needs through increasing exploration activities, especially after signing 83 oil agreements.
He stressed that the government is keen to repay its dues to foreign partners, so as to enable them to continue their exploration activities in the country.
He continued, “Egypt will continue to appreciate the role of its partners, who have set a good example of fulfilling their duties and programs during the last period.”
Minister of Finance Amr El-Garhy said in a previous statement that the government paid $200m of its dues to foreign oil companies last January and it plans to repay $550m during February and March.
Minister of Petroleum Tarek El-Molla estimated foreign partners’ investments in the oil sector at $10bn this year.