CAIRO: The Ministry of Petroleum is touting a new repayment strategy set to run until July 2017 for some of the debt it owes to foreign energy companies, inside sources told Al-Ahram Saturday.
“Economizing part of the debts owed to foreign petroleum companies comes within the Ministry of Petroleum’s long-term repayment program for funding $3 billion in financial arrears as monthly premiums until 2017,” the source said.
More than $1.5 billion has been repaid from a total debt of $6 billion owed to the foreign petroleum companies operating in Egypt by the Egyptian Petroleum Authority.
Some foreign companies had not been paid in agreements with the government for four years, which limited exploration and production activities.
Of the six $6 billion in debts, more than half of the amount was owed to the British Gas Group, $1.3 billion for ENI and $300 million for the Malaysian Petronas, Al-Borsa business daily reported Thursday.
In related news, Minister of Petroleum Sherif Ismail told Al-Masry Al-Youm Friday that as of next month, Egypt’s production of petroleum products will reach 480 billion cubic feet daily, or about 854,000 barrels. This is in addition to 680,000 barrels of liquefied gas daily.