Egypt’s debt to foreign oil firms up at $5.7bn

[DJKeefy]

Egypt’s debts to foreign oil companies operating in the country rose to $5.7bn by the end of March, the head of the state-run oil company told Reuters, up $800m from the government’s last reported figure despite recent repayments.

Money owed to foreign oil majors including BP and BG Group totalled $4.9bn in December, indicating Cairo’s debts to the firms continue to mount despite efforts to restore investor confidence by paying down the arrears.

“Arrears to foreign oil firms in Egypt reached $5.7bn by the end of March,” Tarek El Molla, chairman of Egyptian General Petroleum Corp, said late on Tuesday.

Egypt has delayed payments to oil and gas firms as its economy has been hammered by almost three years of instability since a popular uprising ousted autocrat Hosni Mubarak in 2011. Some of the debts were incurred before the revolt.

Egypt paid back $1.5bn at the end of last year, a signal that the government is trying to get firms investing again in extraction and exploration, badly needed to help address a severe energy crunch.

Molla did not say how or when the country plans to repay the rest of the debt. Oil Minister Sherif Ismail said in February the government hoped to schedule repayments of around $3.5bn that will be completed by 2016.

Ismail said last week that Egypt would pay an additional $1bn to the firms within two months.

Energy prices in Egypt are among the lowest in the world, and the cash-strapped government spends more than a fifth of its budget on keeping them down. Artificially low prices provide little incentive for Egyptians to curb consumption.

Source: http://www.dailynewsegypt.com/2014/04/3 ... rms-5-7bn/

[carrie]

I wonder how much the debts were before the revolution?

[Bullet Magnet]

What a ludicrous situation to be in when you think about it...

[Brian Yare]

Energy prices in Egypt are among the lowest in the world, and the cash-strapped government spends more than a fifth of its budget on keeping them down. Artificially low prices provide little incentive for Egyptians to curb consumption.

Watching the locals driving everywhere, accelerating and braking violently, etc., it is no wonder that they use so much road fuel. If prices were not subsidised they 'might' change these habits. The 'sleeping policemen' obviously do not help.

But the current 'official' price for 92 octane is 1.85 LE/l (off the top of my head) while the garages seem to have raised their prices from 3LE to 4LE.

What is the price where you are?

[Who2]

Bet the Yanks owe much more, ba***ds owe the United Nation billions, humanity sucks eat a McD..
Ps: as far as benzine goes, I say 'put in 50 or 100 and always stop him at 45 or 95, neither of us are stupid, I never look at the price I really couldn't be 'asked to work our galls or liters...What's the point ? If it's to dear don't drive or **** of somewhere cheaper...'moan 'moan 'moan...

[Chocolate Eclair]

1.92le for 92 Brian, really to get things right this should be at least 6le a litre it would also stop parents giving kids a couple of le to put benzine in the tank to get rid of them for the evening. I was in a queue at the petrol station the other day when a young man put 1 litre in his tank, made me laugh!! the only way to improve finances is to raise taxes on fuel, there should also be a vehicle tax of say 100le for motorbikes and 200le for cars per year and between 500le and 1000le for PSV and goods vehicles, to help with road repairs and alterations, introduce property tax on the square metres of the lived in property, and 50% reduction for property not lived in, this will allow people that have built for the future a tax decrease, it will also stop building and construction until the premises are required, increase tobacco tax, alcohol tax, and a proper and fair income tax for everyone. To insist in proper book keeping and stock control for registered business's with proper sales receipts and not draws under the table, unregistered business's should be closed and the owners fined, or if insistent imprisoned. They should do this and stop putting extra on luxury goods to which many cannot afford anyway, therefore not much raised for the Government here.These is the harsh facts that eventually may well have to be implemented in the future.

[Who2]

Mr Kiljoy strikes again!...
Ps: "If you really want all these implementations and laws why don't you buy a place in Tottenham or Morden, Belize ? comes to mind!
Pss: Having just reread the above post, it's the same 'tome that 5 years ago was telling us how to build houses over here,
still haven't learnt the 1st principal yet ?...'Chill'...

[A-Four]

I wonder how much the debts were before the revolution?

To answer your question here Carrie, actually things were not too bad, the so called revolution was not about a shortage of money, in fact as you know a new property tax had been fully prepared, and a special deal with Egypt's civil service had been put in place, which was music to the ears of the IMF. The new revenue would have had no real serious effect on most of the population, or should I say the mainly poor people of Egypt.

There were large infra-stucture projects put in place for Upper Egypt, though these were not really to benefit Luxor's tourist industry, they were more to do with transporting tourists efficiently, between various Red Sea resorts, either by train or road, to enjoy a Nile cruise and of course VISIT the wonderful 'Luxor Open Air Museum', now you know why most of the international hotels pulled out of Luxor centre.

With regards to Keefy's initial post here, which I am most grateful for, I shall write more on this situation tomorrow, until then no one should hope for good news.

[Chocolate Eclair]

Does my ideas effect you Doctor???? The Tardis will be exempt I presume...

Every single one of my ideas would effect me, but because I want to see improvements, I am not too bothered.

[A-Four]

The information written in Keefy's initial post here is totally incorrect, the debts to many companies operating in Egypt are far greater than as posted above, so it makes you wonder where the truth is, and who will pay the ferry man.

See,......subject Benzine, in Living In for more info on this subject.