Egypt to Repay $2-3 billion of Foreign Oil Debts at 2014-end – Minister

Egypt seeks to repay by end of this year around US$2-3 billion of its total debts to foreign oil companies working in Egyptian market, the country’s oil minister Sherif Ismail said.

Egypt currently owes around $5.9 billion to foreign producers for oil and gas they sell to the government for use domestically.

During a press conference on Tuesday, the Egyptian minister stated that his country will pay off some of its debts to the foreign oil companies in the coming few days.

Furthermore, Ismail noted that the Egyptian government will launch a tender after Eid Al-Adha vacation, seeking to borrow from international banks in order to repay the debts owed to foreign oil companies operating in the country.

Egypt plans to pay back some of its ballooning debt to international energy companies in a bid to revive confidence in its flagging hydrocarbon sector and boost production.

Since 2011 uprising, Egypt has been in an energy crisis, most evident in frequent electricity blackouts. Several government officials have attributed the power cuts to fuel shortage and declining gas production.