Egypt To Repay Debts To Foreign Oil Companies Within Six Months

Related stories

Tinubu Departs Saint Lucia, Heads to Brazil for BRICS Summit

By Abiola Olawale President Bola Ahmed Tinubu departed Saint Lucia...

2027: Drama, Intrigues as Julius Abure Tells Otti to Quit Labour Party

By Abiola Olawale In a dramatic turn of events, Barrister...

FG Secures $100m for Lagos-Calabar Project from ECOWAS Bank

By Abiola Olawale The Nigerian government has reportedly secured a...

Ex- Arsenal Star Thomas Partey Faces Rape, Sexual Assault Charges in UK

By Abiola Olawale The Metropolitan Police have formally charged former...

Edwin Cortes: Prefers Being A Small Puerto Rican Than Big American

By Owei Lakemfa To be a citizen of the United...

Egypt plans to repay all of the $4.9 billion debt owed to foreign oil and gas companies within six months, the oil ministry said on Thursday, a move it hopes will prompt them to step up exploration and ease the worst energy crunch in decades.

Egypt has delayed payments to oil and gas firms as its economy has been hammered by almost three years of instability since a popular uprising ousted autocrat Hosni Mubarak.

Arrears had begun to accumulate before the revolt, but worsening state finances saw the debts mount to billions of dollars while the government diverted gas that had been earmarked for export, to meet domestic demand.

oil gas

Read also: Expectations As NLNG Signs Construction Contract for Train 7 to Boost Output

Gas production has steadily declined in Egypt while consumption keeps rising, but firms have been reluctant to increase investment in exploration and production, particularly in costly offshore areas, until the government pays them back.

The oil ministry said in a statement that Egypt planned to borrow $2 billion to help it finance the repayments, seeking to pay back 60 percent of the arrears by year-end. Egypt said in October it had repaid $1.5 billion of the money owed, leaving $4.9 billion outstanding.

“This offering, comes as one of the short-term measures taken by the government to pay the IOCs’ (international oil companies) arrears,” Oil Minister Sherif Ismail said in the statement.

He said that state oil and gas boards EGPC and EGAS were holding another round of talks with the oil companies, in parallel with the repayments, to “manage their expectations”.

Read also: Dubai Police: Why We Arrested Instagram Billionaire, Hushpuppi, Real Name, Age Revealed

The gas shortage has left the Arab world’s most populous country struggling with its worst energy crisis in years. Blackouts became an almost daily occurrence over the summer months and the government has also diverted gas away from heavy industries, doing substantial damage to the bottom lines of some companies.

Egypt began cutting subsidies on fuel and electricity in July as part of economic reforms aimed at curtailing its budget deficit and curbing growth in domestic energy consumption.

 

Hamilton Nwosa
Hamilton Nwosa
Hamilton Nwosa is an experienced, and committed communication, business, administrative, data and research specialist . His deep knowledge of the intersection between communication, business, data, and journalism are quite profound. His passion for professional excellence remains the guiding principle of his work, and in the course of his career spanning sectors such as administration, tourism, business management, communication and journalism, Hamilton has won key awards. He is a delightful writer, researcher and data analyst. He loves team-work, problem-solving, organizational management, communication strategy, and enjoys travelling. He can be reached at: hamilton_68@yahoo.com

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories

NDN
Latest News
Tinubu Departs Saint Lucia, Heads to Brazil for BRICS Summit2027: Drama, Intrigues as Julius Abure Tells Otti to Quit Labour PartyFG Secures $100m for Lagos-Calabar Project from ECOWAS BankEx- Arsenal Star Thomas Partey Faces Rape, Sexual Assault Charges in UKEdwin Cortes: Prefers Being A Small Puerto Rican Than Big AmericanJune 12 And The International Pursuit of Justice For Abiola, By Femi FalanaBreaking Down the West’s $146 Billion 2024 Defence Technology InvestmentG7 vs. the World: GDP, Population, and Military StrengthUS drillers cut oil and gas rigs for 10th week in a row, Baker Hughes saysExclusive! Tinubu Tips Late Ajimobi's Wife, Florence, Others for Ambassadorial PostsTinubu Mourns, Pays Tribute to Legendary Super Eagles Goalkeeper Peter RufaiNatasha vs Akpabio: Court Orders Senate President To Recall Senator NatashaHadi Sirika Denies Defection to ADC Coalition Rumors, Reaffirms Loyalty to Buhari, APCChina Snubs U.S. Crude for Third Month, Even as Ethane Trade RestartsHow Super Eagles Icon Peter Rufai passed Away at 61
X whatsapp