The World Bank will grant the Egyptian Ministry of Petroleum a $200m loan. The amount is part of a $1b loan agreement recently signed by both parties, part of which is earmarked to pay dues to foreign oil companies, an official at the Egyptian General Petroleum Corporation (EGPC) told Al Mal.
The source stated that the entire $200m will be directed to pay dues, noting that BG’s arrears are the largest, amounting to $1.2b. A significant portion of Egypt’s total debt to foreign oil companies of $3b.
Efforts are being directed to reduce BG’s debt through several methods, one of which is granting the company larger portion of its production of crude oil.
Egypt’s last payment of dues was in September 2015, where Tarek El Molla, Minister of Petroleum confirmed payment of $600m of Egypt’s debt reducing it to $2.9b, from $3.5b, according to Daily News Egypt.