EGPC Stresses its Negotiation with 4 Banks to Pay Foreign Firms Dues

Amr Mostafa, Vice Chairman of the Egyptian General Petroleum Corporation (EGPC), has asserted that the authority  is currently negotiating with several banks in order to pay 25% from the foreign companies dues which reached $4.5 billion to keep the rights of foreign partners and that grant their exit from the investment in the Egyptian market.

Mostafa added that the general resources of the EGPC won’t contribute in paying these dues in the light of importing large quantities of petroleum products from abroad; pointing out that the EGPC has paid $50 million from its dues during the last few days to the suppliers of butane.

Mostafa explained that the Petroleum sector is seeking to boost the rates of petroleum production in accordance with the Ministry’s strategy in order to satisfy the needs of the domestic market with the required quantities.

Senior sources from the banks informed Amwal Al Ghad that the EGPC is negotiating with the National Bank of Egypt(NBE), Banque Du Caire, Banque Misr and the Commercial International Bank (CIB) so as to provide separate offers to arrange $1 billion loan for paying part of foreign partners dues.

EGPC paid part of its dues to the banks worth EGP19 billion, so the total dues became EGP47 billion, against EGP66 billion at the beginning of 2011, including EGP22 billion in favor of NBE and it will stimulate the banks to deal with the authority and to re-open the funds again.

The dues of EGPC have been reduced in the first half of this year to reach $4.5 billion, against $6 billion.