Egypt owes foreign oil companies $6 billion

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Egypt owes foreign oil companies $6 billion

Post by DJKeefy » Thu Sep 12, 2013 12:34 pm

Prime Minister Hazem El-Beblawi says Egypt is close to reaching an agreement for repaying $6 billion in outstanding debt to foreign oil companies.

Egypt is close to agreeing a schedule for repaying $6 billion in outstanding debt to foreign oil companies, Prime Minister Hazem El-Beblawi said in a newspaper interview published on Thursday.

Beblawi also told Al Masry Al Youm that reaching an agreement would lead to a rise in investments from the companies to $15 billion within two years.

The Egyptian state, racked by political and economic turmoil since the ouster of Hosni Mubarak in February 2011, has been struggling to meet soaring energy bills caused by high subsidies on fuel products for the country's 84 million-plus population.

"We are in debt to foreign oil firms for around $6 billion, which is what led them to stop investing. We are on the verge of reaching an agreement with them to schedule the debts," Beblawi said.

"Reaching a settlement will lead to a rise in investment from foreign (oil) firms within two years to $15 billion."

Earlier this month, Oil Minister Sharif Ismail said Egypt was preparing a timetable for repaying arrears on debts it owes to foreign companies in order to encourage them to continue investing in exploration and development.

Financial disclosures by firms including BP PLC, BG Group, Apache, Edison SpA and TransGlobe Energy show Egypt owed them more than $5.2 billion at the end of 2012.

Dana Gas, owed $230 million by Egypt in overdue payments for gas supplies, said it was in active dialogue with the government over the debts.

Source: http://english.ahram.org.eg/News/81432.aspx


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Re: Egypt owes foreign oil companies $6 billion

Post by A-Four » Thu Sep 12, 2013 4:09 pm

You may remember I brought this to your attention in mid July, and that was a few days before the international press got word.

Seems to me that, not only is El Ahram being economical with the truth here, but so is the 'new' Egyptian Government.

This figure of owed money to 'the sisters' is $7-5 Billions, but then again what is $1-5 Billion, when you can blame the previous lot.

I think you are about to see a huge political balloon burst in Egypt to do with Moursi and his finance minister, though I believe they had nothing to do with it, but its all to do with lost money.

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Re: Egypt owes foreign oil companies $6 billion

Post by A-Four » Thu Sep 12, 2013 4:09 pm

Seems to me that, not only is El Ahram being economical with the truth here, but so is the 'new' Egyptian Government.

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Re: Egypt owes foreign oil companies $6 billion

Post by Who2 » Thu Sep 12, 2013 5:38 pm

Quote:I think you are about to see a huge political balloon burst in Egypt to do with Moursi and his finance minister, though I believe they had nothing to do with it, but its all to do with lost money.

In the end 'somebody has to hang for this debt, so why-not kill two birds with one stone.
Ps: make it a spectacle like in the old days 'heads on spikes at the gates, 'You-Tube it, that'll teach em.....:cool:
"The Salvation of Mankind lies in making everything the responsibility of All"
Sophocles.

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Re: Egypt owes foreign oil companies $6 billion

Post by LovelyLadyLux » Thu Sep 12, 2013 10:51 pm

Ps: make it a spectacle like in the old days 'heads on spikes at the gates, 'You-Tube it, that'll teach em.....:cool:
That be really a big boost to the TV ratings prime time viewing!! AND definitely put Egypt on the map!

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Re: Egypt owes foreign oil companies $6 billion

Post by A-Four » Fri Sep 13, 2013 1:05 pm

Who2 wrote:Quote:I think you are about to see a huge political balloon burst in Egypt to do with Moursi and his finance minister, though I believe they had nothing to do with it, but its all to do with lost money.

In the end 'somebody has to hang for this debt, so why-not kill two birds with one stone.
Ps: make it a spectacle like in the old days 'heads on spikes at the gates, 'You-Tube it, that'll teach em.....:cool:
You may also remember that in mid May of this year, that I brought to your attention, long before the international press got the story, that Egypt's finance minister, the only person to follow through from Mubarak era, resigned. I suspect that he had a full look at the way some people were carry out the wishes of the new administration, and looked into the abyss. The same as when one bright morning Alistar Darling saw that world banking was f#####.

The trouble with a 'democracy' that has been in power for 30 years is that, when it falls a new president, one that is either far right, or far left of the previous administration, he or she MUST have the full support of the senior civil service. In my opinion, even a blind man in little old Luxor can see that this was certainly not the case.

P.S.- Perhaps, many heads, on many spikes, at many gates, but we all know that will not happen,................. that would be revolution.

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Re: Egypt owes foreign oil companies $6 billion

Post by Chocolate Eclair » Sat Sep 14, 2013 9:18 am

it may not be long before they fill the gap in finances the way things are going A4, this week more than 8 regular items we buy in our shopping had gone up in price from between 8le and 27le that's a good increase, in some cases, a 15-20% rise unheard of in a one week period.

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Re: Egypt owes foreign oil companies $6 billion

Post by LivinginLuxor » Sat Sep 14, 2013 9:25 am

I've found that too, Choc - but when I looked at the labels, they were imported, and the import duty rates have increased hugely recently - so new stock is obviously costing the shopkeeper more and has to pass it on.

On the other hand...... I had heard that the Ramesseum Rest had increased the price of Stella - went there the other day, prepared to pay the extra 2LE - but the price was the same as it always was. Apparently, the locals refused to pay the extra, and stayed away, until the price was returned to the old level! People power once again!
I might agree with you, but then we'd both be wrong!
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Re: Egypt owes foreign oil companies $6 billion

Post by A-Four » Sun Sep 15, 2013 1:27 pm

LivinginLuxor wrote: Apparently, the locals refused to pay the extra, and stayed away, until the price was returned to the old level! People power once again!

Is it any wonder that the governor of that very old drinking den has never enough money to give the joint a lick of paint,........God bless that old scoundrel, Sheikh Mahmood. To think that his whole pension is all wrapped up in that dive. :urm: .

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Re: Egypt owes foreign oil companies $6 billion

Post by Brian Yare » Sun Sep 15, 2013 7:32 pm

A-Four wrote:
LivinginLuxor wrote: Apparently, the locals refused to pay the extra, and stayed away, until the price was returned to the old level! People power once again!

Is it any wonder that the governor of that very old drinking den has never enough money to give the joint a lick of paint,........God bless that old scoundrel, Sheikh Mahmood. To think that his whole pension is all wrapped up in that dive. :urm: .
He only rents the RRH. The owners should be responsible for the external maintenance (but not the internal state of the toilet block, lack of water, soap, bog-roll, locks, etc.)

The Marsam, a few hundred yards to the south, charges more for a beer but at least has properly equipped bogs.

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Re: Egypt owes foreign oil companies $6 billion

Post by A-Four » Fri Dec 13, 2013 8:49 pm

Egypt's Oil Minister Mr Sherif Ismail has today promised to pay BP and the other members of 'the Sisters' $1.5 Billion of $7 Billion it owes, however I should point out that no date has yet been announced. I think it is important to make clear, that one of the 'little sisters', British Gas (BG) who is the main supplier of Egypt's natural gas, has warned that a non such payment would mean a reduced supply of natural gas on a new contracts with the Egyptian government.

It is expected that Egypt's supply by BG will remain in the region of $2 to $3 pr unit, where in the U.K. it is above $10 per unit and is in access of $17 in Asia,......Yet there is still no deal on such a loss price fix.

Soon, some one will seriously have to ask, Where has all the money gone during the short Morsi era ?

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Re: Egypt owes foreign oil companies $6 billion

Post by Glyphdoctor » Fri Dec 13, 2013 9:36 pm

Brian Yare wrote: He only rents the RRH. The owners should be responsible for the external maintenance (but not the internal state of the toilet block, lack of water, soap, bog-roll, locks, etc.)
I don't know if it applies to commercial property like this, but tenants are legally responsible for their share of external maintenance of a building here in Egypt in residential buildings.

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Re: Egypt owes foreign oil companies $6 billion

Post by Who2 » Sat Dec 14, 2013 6:40 am

Egypt's debt a 'mere drop in the ocean compared to the Yanks.
$328 billion surge in only one day….. :cool:
http://rt.com/usa/us-debt-record-default-obama-412/
"The Salvation of Mankind lies in making everything the responsibility of All"
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