According to informed sources, the Egyptian government is heading towards paying one billion dollars in dues of foreign oil companies this January.
Egyptian Finance Minister Ahmed Kouchouk announced in recent press statements that the government has paid 25 to 30 percent of the arrears of foreign partners in the petroleum sector, stressing that the government will prioritize restoring foreign investments to their normal levels.
This step comes in preparation to close the issue and resume exploration, research and production in the petroleum sector once again, alongside encouraging foreign partners to increase the local production rates of oil and gas.
The Ministry of Petroleum recently provided many incentives to foreign partners in the sector to encourage them to increase the country’s local production of oil and gas.
These incentives included setting a timetable for paying partner dues, in addition to allowing partners to export part of their shares through Egyptian liquefaction stations from the quantities of gas that will be added during the current year.
An agreement was also reached with partners wishing to sell gas and oil to the Egyptian government at prices higher than those agreed upon, equivalent to the prices that would achieve profits for them if exported.
