Sea Dragon Energy (SDX) and Merlon International Oil Firms reached agreements with their suppliers and contractors in Egypt to repay them in EGP instead of USD based on the exchange rate, reported Al Mal News.
Construction firms, which offer services to the oil and gas fields, receive 60% of their payments in USD and the remaining 40% in EGP. Petrosilah Company performs operations for Merlon in its Fayoum Concession. Petrosilah’s CEO, Taher Abd El Riheem, stated that the company succeeded in turning all its payments to EGP instead of USD.
In Addition, SDX’s Regional Manager, Ahmed Farid Mooaz, said that many companies have started negotiating with service companies to pay in the Egyptian pound although the original agreements bind them to pay in dollars.
He added that reaching agreements to pay in EGP helped service companies and contractors to receive their dues from SDX instead of waiting to get paid by the Egyptian General Petroleum Corporation (EGPC). He added that the contracting companies understand that the oil firms get paid in EGP by the Egyptian government.