Egypt's state-run Egyptian General Petroleum Corporation (EGPC) announced that Egypt received a share of the foreign partner’s oil and gas revenues of US$1 billion per month and is repaying around $700 million in financial settlements according to Tarek al-Molla, EGPC’s CEO.
EGPC petroleum sector companies registered LE72.2 billion in profit during FY 2013/2014, al-Molla added.
He mentioned that it will borrow LE10 billion from five local banks in addition to issuing bonds guaranteed from one of the Gulf countries in order to repay part of the dues to foreign petroleum companies that reached $5.8 billion to date.
Meanwhile, according to the report by US Energy Information Administration (EIA) in August 2014, EGPC accumulated $6.3 billion in outstanding arrears to foreign oil and gas companies, of which $1.5 billion was paid back in December 2013.
The debt has since increased back to $7.5 billion as of June 2014 and continues to grow, the report added.
International oil companies (IOCs) play a large role in Egypt’s upstream oil sector, holding shares in producing assets in partnership with EGPC.
