Egypt settles $1B in arrears to foreign oil companies
Updated 11/10/2024 7:48:00 AM
Arab Finance: The Egyptian government has paid $1 billion of its outstanding $2 billion dues to foreign oil companies, an unnamed official told Asharq Business.
This payment is part of the country’s attempt to manage Egypt's energy commitments and bolster natural gas production.
Egypt is grappling with a production shortfall, currently generating around 4.6 billion cubic feet of natural gas per day.
This level falls short of the national demand of 6.2 billion cubic feet per day, a gap that recently pushed the country back into importing liquefied natural gas (LNG) after a five-year period as a net exporter.
The government has set a goal to increase daily natural gas production to approximately 5 billion cubic feet by the end of the year.
These production challenges coincide with the repayment of long-standing debts owed to international oil firms, which reached $4.5 billion as of March.
Since then, Egypt has made incremental payments, including $1.3 billion in June, $1.2 billion in September, and the latest $1 billion installment, bringing the outstanding balance to $1 billion.
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