Oil Ministry owes 70% of its arrears to five international oil companies
The Oil Ministry owes 70% of its arrears to five international oil companies (IOCs), unnamed sources at the ministry told Al Mal.
The companies are BP, Shell, Eni, Apache, and Dana Gas, who together are owed over USD 2.5 bn out of total of USD 3.7 bn the ministry owes the industry.
BP is owed the lion’s share, with around USD 1 bn owed for supplies of crude and natural gas, the source added. The ministry intends to pay USD 500 mn in arrears using part of the first tranche of the IMF loan.
The UAE’s Dana Gas has previously said it will review 2017 Egypt investment plans if not repaid. Meanwhile, sources from Eni have reported that the company received an EGP 1 bn payment in early November as part of a mass payment of arrears by the government to a number of IOCs ahead of the float of the EGP. These payments were reportedly all made in local currency, the source told Al Borsa.
The company used the funds to pay local contractors working with the company. The UK Embassy had previously released a statement that makes clear that Britain made certain Egypt committed to making good on the arrears it owes energy producers as a condition of the facility.