Egypt Pays Another $350 mn to BG Group

BG Group on Friday said it has received further $350 million payment from Egyptian government as latter’s commitment to repay outstanding debts to the energy industry.

“This reduces the company's domestic receivables balance in Egypt to around $920 million,” the company said. “While the Group has been impacted by the reduction of LNG exports from Egypt, the company continues to investigate options for increasing the supply of gas and is working with the government on resolving the outstanding receivable balance.”

Late last year, BG Group had received $350 million as first part of payment for past gas production.  

Egypt owes billions of dollars to foreign oil and gas companies and wants to quickly repay the debt in order to help boost exploration and ease energy shortage in coming years.

Gas production has been declining over the years amid rising domestic consumption, but firms have been reluctant to increase investment in exploration and production, particularly in costly offshore areas, until the government repays them.