Following the commitment from the Egyptian government to repay outstanding debts to the energy industry, BG Group plc has received a $350 million payment. This reduces the company’s domestic receivables balance in Egypt to around $1.2 billion.
The payment is the result of the government of Egypt raising funds specifically to help repay debts to the oil and gas sector. While the Group has been impacted by the reduction of LNG exports from Egypt, the company continues to investigate options for increasing the supply of gas and is working with the government on resolving the outstanding receivable balance, BG said in a press release.
BG Group operates in Egypt through its wholly-owned subsidiary BG Egypt. The company is one of the largest producers of natural gas in Egypt spanning the gas chain from exploration through development and production to LNG. In 2013, Egypt contributed 18% of Group production.