BG Group receives $350m payment from Egyptian Government

UK-based oil and gas firm BG Group has received a $350m payment from the Egyptian Government after the country’s decision to repay outstanding debts to the energy industry.

Egypt has delayed payments as the country’s economy was hurt by around four years of instability since the end of Hosni Mubarak’s rule in 2011.

Egypt’s Oil Ministry said in November 2014 that the country intends to repay all its $4.9bn debt to foreign oil and gas firms within six months.

The country said recently that it had paid $2.1bn of its debt to foreign energy firms.

The latest payment reduced BG Group’s domestic receivables balance in Egypt to around $920m.

The company is working with the government to resolve the outstanding receivable balance.

BG Group is active in more than 20 countries and employs around 5,200 people. The company has added on average one billion barrels of oil equivalent of resources to its portfolio every year for a decade.

The company claims that it will be the largest contracted supplier to China in 2017. It has also delivered to 26 of the 27 countries that presently import LNG.