The stability of the local exchange rate for the US Dollar, will save the Egyptian government an estimated EGP 250m per month; a positive reduction that coincides with the low current Brent price of $28.94 (on Sunday 17/1), an EGPC official told Egypt Oil & Gas.
He explained that Egypt’s currently import deals with fuel exporters stipulates that payments for fuel shipments be made within 45 days of receiving the cargo at Egyptian ports. This is especially in light of the fact that the suppliers refuse to be paid in EGP.
The source added that the coming period would witness many new petroleum agreements signed with foreign partners, pushing up crude oil and natural gas production rates. Measures would be taken to facilitate huge investments for drilling operations. Egypt is aiming for $8.5b worth of investment during 2016.
It is worth noting that Egypt has to pay a 1% interest rate a year in US dollars in the event of late payment to fuel suppliers for the value of shipments.