Egypt’s Petroleum Ministry arrears to IOCs increase to $3.6 billion

EGPCEgypt’s Ministry of Petroleum’s dues to foreign oil and gas companies, cooperating with the Egyptian General Petroleum Corporation (EGPC), increased to reach about $3.6bn, compared to $3.5bn at the end of fiscal year (FY) 2015/2016.

A senior source in the Ministry of Petroleum told Daily News Egypt that the ministry is to repay part of the dues to foreign partners before the end of 2016, if the Ministry of Finance and the Central Bank of Egypt (CBE) provide US dollar liquidity.

The source explained that Egypt’s unstable economic conditions have prevented the government from repaying dues to foreign partners since August 2015.

In August 2015, EGPC paid dues of about $600m to foreign partners in Egyptian pounds.

These dues were distributed on all foreign companies, with plans to pay off another batch to motivate foreign partners to pump more investments.

The target of the Ministry of Petroleum was to reduce its dues to less than $2.5bn by the end of 2015, and to repay its full dues by the end of 2016.

(Source: Al Bawaba News)

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