CAIRO: President Abdel Fatah al-Sisi ordered the government to provide the needed-sums to repay the foreign petroleum partners’ due debts, totaling at $6 billion, before the end of 2014, an inside source at the Cabinet told Al-Mal Business daily Tuesday.
“As for providing the needed finance, the Cabinet is thinking about auctioning dollarized bonds to repay the debts,” the source said. “The Cabinet is asking the United Arab Emirates and Saudi Arabia to present guarantees needed to offer international bonds next September.” The value of these bonds is worth $3-4 billion.
“Besides issuing $3-4 billion as international bonds, the General Authority for Petroleum is addressing the National Bank of Egypt to prepare $1.5 billion,” the authority reported.
During his meeting with Economic Group late Monday, Prime Minister Ibrahim Mahlab announced that “repaying the petroleum companies’ due debts is the ministry’s top priority in the upcoming phase to solve investment problems and pave the way for new investments,” Al-Mal reported Monday.
Of the foreign partners, some companies that had financial arrears limited their exploration and production activities and some other companies have not been paid in agreements with the government for four years, Al-Borsa business daily reported mid-July.
Of the $6 billion in debts, more than half was owed to the British Gas Group, $1.3 billion for ENI, and $300 million for Malaysian Petronas.
In related news, Minister of Petroleum Sherif Ismail told Al-Masry Al-Youm mid-July that as of August, Egypt’s production of petroleum products will reach 480 billion daily in addition to 382.2 billion cubic feet of liquefied gas daily.