MEMPHIS REISEN

Egypt begins clearing 20% of debt to foreign oil firms – Dailynewsegypt

The Egyptian government has embarked on a plan to settle its outstanding debts with foreign oil companies operating in the country. The initiative, announced during a meeting chaired by Prime Minister Mostafa Madbouly on Tuesday, involves an initial payment of 20% of the total arrears.

Egypt’s debt to foreign oil companies operating in the North African country was $5.9bn by the end of April.

Money owed to foreign oil majors including BP and BG Group totalled $4.9bn in December, indicating Cairo’s debts to the firms continue to mount.

Prime Minister Madbouly, joined by Central Bank of Egypt Governor Hassan Abdalla, Petroleum and Mineral Resources Minister Tarek El-Molla, and Finance Minister Mohamed Maait, emphasized the government’s commitment to addressing this longstanding issue.

He outlined a well-defined mechanism for settling the debts, aiming to rebuild confidence and attract further foreign investment in Egypt’s crucial energy sector.

The meeting also addressed securing a steady supply of petroleum products for the domestic market.

Discussions focused on ongoing exploration and research plans, alongside efforts to enhance the production capacity of Egyptian refineries.

This dual approach aims to boost local production of high-quality petroleum products and improve operational efficiency.