Egypt to pay $1B to foreign oil firms

Egypt reportedly has made a ~$1B payment on the ~$6.4B it owes to international energy firms, a move designed to revive confidence in the country's economy.

Egypt is worried that if the payments don't get into the accounts of the foreign energy firms this month, they will either exit the country or take legal action instead of increasing their exploration and production investments.

The government has promised to pay $3B by 2017 to several energy firms, including BP, Apache (APA) and BG Group (BRGYY, BRGXF).

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  • treyminator
    , contributor
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    Egypt's leadership makes the right move here to get the country's economy going in the right direction. Instead of nationalizing industries for short term political gain, the leadership recognizes it can receive more money by letting companies do what they do AND honor their contractual obligations by paying what is owed. By resuming payments and making the effort to bring its accounts current, Egypt will provide private enterprise the confidence it needs to invest more in the country. If all goes well, Egypt may be able to accelerate payments and catch up sooner than projected. Success tends to breed more success. The bottom line for the leadership is that a healthy economy with citizens making money is the best defense to the Brotherhood.
    31 Dec 2013, 08:23 AM Reply Like
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