Dana Gas will delay making new investments in Egypt’s oil and gas sector due to unpaid arrears, the company stated in a press release.
“Due to the lack of regular and predictable payment the company will continue its strategy of balancing its investments in Egypt against its collections in the near term,” the Emirati company stated.
Egypt’s trade receivables to Dana Gas decreased from $228 million to $202 million in the first half of 2018, of which $120 million is still overdue.
“We have plans, but [the debt] weighs heavily on our investment decisions,” CEO Patrick Allman-Ward said, according to S&P Global.
The company said that it billed $62 million in Egypt and collected $89 million in the first half of 2018, of which $21 million was from condensate exports.
Total arrears owed by state organizations to international oil companies (IOCs) fell to $1.2 billion in FY 2017/18, according to official figures. The Ministry of Petroleum has said that it hopes to pay off all debts to IOCs before the end of 2019.