Egypt to Repay $3.5b to IOCs

The Egyptian Minister of Petroleum and Mineral Resources, Tarek El Molla, stated that Egypt is committed to repaying the $3.5b debts for international oil companies (IOCs) even with the recent USD shortage, reported Reuters.

The Egyptian dues for IOCs had decreased from $3.6b in September 2016 to be $3.5b in December 2016.

Therefore, The Egyptian General Petroleum Corporation (EGPC) sent its periodic letters to companies in the sector, declaring the USD exchange rate for IOCs repayment after the EGP devaluation reached EGP 17 for each $1, reported Daily News Egypt.

A source from the ministry of petroleum explained that IOCs receive big part of their shares of oil and gas in EGP after the devaluation. This led to a considerable saving for the partners.

Foreign partners receive the value of technical services and wages in EGP since the foreign currency shortage in the Egyptian market started. In turn, they received discounts of up to 40% on the value of renting equipment and technical services.

El Molla further pointed out that Egypt ensures paying a monthly installment to IOCs to prevent debt increase.

The IOCs working in Egyptian oil and gas exploration and production E&P include UK’s BP, Royal Dutch Shell and Italian Eni.

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Sarah Samir 3515 Posts

Sarah has been writing in the oil and gas field for 8 years. She has a Bachelor Degree in English Literature. She has three years of experience in the banking sector.

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