(MENAFN) In a significant move aimed at addressing financial obligations, the Egyptian government announced on Tuesday that it has commenced the payment of arrears owed to foreign companies involved in petroleum projects within the country. A statement released by the Cabinet outlined the government's efforts to initiate the process of settling outstanding dues to foreign partners engaged in petroleum projects in Egypt. As part of a structured plan, the government has begun disbursing approximately 20 percent of the total arrears, with a commitment to progressively clear all outstanding debts in the coming period.
Prime Minister Dr. Mostafa Madbouly underscored the government's determination to prioritize the resolution of arrears owed to foreign oil companies operating in Egypt. Dr. Madbouly emphasized the implementation of a robust mechanism designed to facilitate the prompt payment of dues to foreign partners. This strategic initiative, according to the Prime Minister, is aimed at instilling confidence and assurance within the energy sector, thereby fostering an environment conducive to attracting foreign investments.
Dr. Madbouly's remarks were made during a high-level meeting convened to oversee the progress on resolving outstanding receivables owed to foreign companies involved in petroleum projects in Egypt. The meeting, which 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, underscores the government's concerted efforts to address the issue and ensure the effective implementation of measures to expedite the payment process.
The initiation of payments to foreign oil companies represents a significant step forward in Egypt's efforts to strengthen its economic partnerships and promote a favorable investment climate in the energy sector. Leveraging partnerships with international entities and securing the necessary financing reflects Egypt's commitment to fostering collaboration and securing resources to support its development objectives in the petroleum industry.
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