Gulf aid helps Egypt pay dues of oil firms, says official

EGPC signed an agreement with foreign oil companies in mid-2011 to pay the dues on installments after a 6-month grace period in return that these companies do not cut their investments in Egypt. Dues were estimated at 5.4 billion USD by June.

Gulf aid helps Egypt pay dues of oil firms, says official

An Egyptian official has said Gulf Arab aid will help Egypt pay the dues of foreign oil companies in the country.

"The Gulf aid will give a more robust financial flexibility to the Egyptian General Petroleum Company," an EGPC official told Anadolu Agency (AA).

Saudi Arabia, the United Arab Emirates (UAE) and Kuwait have offered 12 billion USD in aid to support Egypt's economy during the transitional period after the ouster of President Mohammad Morsi.

The official denied that EGPC has stopped paying the dues of oil foreign partners despite the political turmoil in Egypt.

"We are committed to an agreement with foreign companies on rescheduling the dues," he said.

The dues of foreign oil companies in Egypt are estimated at 5.4 billion USD by June.

EGPC signed an agreement with foreign oil companies in mid-2011 to pay the dues on installments after a 6-month grace period in return that these companies do not cut their investments in Egypt.

The deal was reactivated in 2012, but the past four months saw tumbling in paying the dues.

Foreign oil companies have threatened to halt new investments if Egypt failed to pay the dues.

Egypt has been thrown into political turmoil since Morsi's ouster under an army roadmap for Egypt's future after massive demonstrations against his regime.

Thousands of Morsi's supporters are camping in the streets to demand the return of the elected leader to office.

AA

Last Mod: 13 Temmuz 2013, 13:24
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