Egypt Daily News – The Egyptian government has paid an additional $800 million of overdue dues to foreign oil companies by the end of last month, according to a government official familiar with the matter who spoke to Asharq on the condition of anonymity due to the sensitivity of the issue.
This payment brings Egypt’s total payments to foreign oil companies involved in oil and gas exploration and extraction to $6.3 billion since June of last year.
Efforts to settle the dues come as the country strives to increase its natural gas production, which has fallen to 4.2 billion cubic feet per day, insufficient to meet domestic needs. This has led Egypt to once again become an importer of liquefied natural gas (LNG) after five years of being a net exporter.
The government official said that Egypt Pays $800 Million of Outstanding Dues to Foreign Oil Companies.
New Oil Discoveries in Egypt
The official also revealed that new “promising” oil discoveries are expected to be announced soon, which are anticipated to help regain its status as a natural gas exporter by 2027.
In a bid to encourage foreign partners to boost local production, Egypt’s Ministry of Petroleum has offered several incentives, including a scheduled payment plan for overdue dues and agreements with partners wishing to sell gas and oil to the Egyptian government at prices higher than initially agreed upon, reflecting export-level pricing that ensures profitability.
