Egypt’s Ministry of Petroleum spokesman Hamdi Abdel Aziz yesterday denied reports published in local newspapers about threats made by four oil companies to withdraw their investments if the government delayed the payment of monies owed to foreign partners before the end of March.
Read: Egypt’s external debt rises to $48.1bn by June
Abdul Aziz added in a press statement that the presence of accumulated fees from previous years does not represent a threat whatsoever, especially because more than 50 per cent of arrears were paid.
Private Egyptian newspaper Al-Watan yesterday quoted an unnamed source saying that negotiations are currently taking place between the Ministry of Petroleum and a number of foreign partners to pay part of the debt, which amounts to $3 billion, to stop the companies withdrawing their investments.
Also read: Egypt to borrow $3 billion from World Bank
The source explained that the Egyptian petroleum sector was able to pay more than 50 per cent of the $6.3 billion which were originally owed in December 2013.
According to ministry’s spokesman, foreign investments in the country’s oil sector currently make up approximately $7 billion.
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