Foreign oil firms are owed a total of $6billion by the Egyptian government after months of disruption which has affected the company, it has emerged.
A host of oil majors operating in the country have revealed in recent months they are owed significant firms for oil and gas production – most notably BG Group, which is due more than $1.3billion.
The country has been struggling to meet energy bills which have risen dramatically due to high fuel subsidies.
But the country’s prime minister says Egypt is now preparing a deal over repayment of the money due to foreign companies.
Hazem el-Beblawi told the Al Masry Al Youm newspaper that Egypt was ready to reach an agreement over a repayment timetable, which it hoped would encourage further investment in the oil and gas infrastructure.
“We are in debt to foreign oil firms for around $6 billion, which is what led them to stop investing,” he said.
“We are on the verge of reaching an agreement with them to schedule the debts. Reaching a settlement will lead to a rise in investment from foreign firms within two years to $15 billion.”
Dana Gas, which is owed more than $230million in overdue payments for gas supplies, said earlier this month it was in talks over repayments.
In the last few weeks companies have withdrawn staff from Egypt amid violent clashes between police and supporters of the country’s ousted president Mohammed Morsi.
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