Egyptian administration begins to pay arrears of foreign oil firms
Date
3/27/2024 4:35:06 AM
(MENAFN) In a significant development, the Egyptian government announced on Tuesday that it has commenced the payment of arrears owed to foreign companies engaged in petroleum projects within the country. According to a statement issued by the Cabinet, the government has initiated the process of settling outstanding dues to foreign partners involved in petroleum projects, amounting to approximately 20 percent of the total arrears. This payment is part of a comprehensive plan aimed at gradually clearing all outstanding debts owed to foreign companies in the petroleum sector in the near future.
Prime Minister Dr. Mostafa Madbouly reiterated the government's commitment to addressing the issue of arrears owed to foreign oil companies operating in Egypt. Emphasizing the importance of this initiative, Dr. Madbouly underscored the implementation of a robust mechanism designed to facilitate the timely payment of dues to foreign partners. Such measures, he noted, are essential for fostering confidence and stability in Egypt's energy sector while also attracting increased foreign investments to this critical area of the economy.
The Prime Minister's remarks came during a meeting convened to oversee progress on the resolution of outstanding receivables owed to foreign companies involved in petroleum projects in Egypt. The meeting was attended by key officials, including the Governor of the Central Bank, Hassan Abdullah, Minister of Petroleum and Mineral Resources, Engineer Tariq Al-Mulla, and Minister of Finance, Dr. Mohamed Maait. This high-level gathering underscores the government's commitment to actively addressing the issue and ensuring the effective implementation of measures to expedite the payment process.
The initiation of payments to foreign petroleum companies represents a significant step forward in Egypt's efforts to strengthen its economic partnerships and promote a favorable investment climate. By proactively addressing outstanding financial obligations, the government aims to instill greater confidence among foreign investors and bolster the attractiveness of Egypt's energy sector for future investment opportunities.
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