Egypt Daily News – The Egyptian government has made strides in addressing its financial obligations to foreign oil companies, paying off $1 billion of the $2 billion owed as of last Monday.
This payment is part of a larger effort to settle a total of $4.5 billion in arrears, which have been reduced through prior payments: $1.3 billion in June, $1.2 billion in September, and the recent payment of $1 billion. Currently, there remains $1 billion in outstanding dues.
The urgency to settle these payments is tied to Egypt’s need to ramp up natural gas production, which has decreased to 4.6 billion cubic feet per day, short of the 6.2 billion cubic feet required daily.
The government is targeting an increase in production to approximately 5 billion cubic feet per day by year-end. This situation has prompted Egypt to re-enter the liquefied natural gas import market after previously being an exporter for five years.
The government’s strategy includes revising development plans and fostering negotiations with foreign partners, implementing a structured payment schedule to avoid future debt accumulation, and introducing incentive mechanisms for timely payments.
This proactive approach aims to stabilize the energy sector and ensure a more secure supply of natural gas for the country’s needs.
