Egypt Today: The Egyptian government is preparing to disburse $1 billion in outstanding payments to foreign energy companies early next month, a senior official told EnterpriseAM.
This payment will mark the final installment, as the government aims to fully settle all dues to foreign energy firms by the end of the year.
This initiative is part of Egypt’s broader strategy to support and incentivize the energy sector, encouraging international companies to expand investments in exploration and production, particularly in the West Mediterranean and West Delta regions.
The move is expected to bolster investor confidence and drive further energy development projects.
Egypt is actively working to bridge a natural gas supply gap of approximately 2 billion cubic feet per day. To address this, the government is securing long-term LNG contracts, fast-tracking exploration efforts, and expanding renewable energy initiatives to enhance overall energy security.
Meanwhile, BP has advanced its expansion plans in Egypt, successfully launching the second development phase of its Raven natural gas field in the North Alexandria offshore concession.
The newly drilled wells are expected to produce 220 billion cubic feet of gas and 7 million barrels of condensate. Last month, BP completed the drilling of two additional gas wells, investing $400 million in the process.
As of March 2024, Egypt’s outstanding debts to foreign energy companies stood at $4.5 billion. Over the past year, the government has made steady progress in clearing arrears, disbursing $1.3 billion in June, $1.2 billion in September, and $1 billion in November 2024.
With just $1 billion left to be settled next month, Egypt is on track to fully resolve its obligations to foreign energy firms, reinforcing its commitment to a stable and thriving energy sector.
https://www.egypttoday.com/Article/3/138470/Egypt-to-Clear-Remaining-1-Billion-in-Energy-Arrears-by
