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Egypt has secured a loan worth up to $1.5bn to reduce its debts to international oil companies (IOCs), a further step towards boosting upstream investment.
State oil firm Egyptian General Petroleum Corporation (EGPC) chose National Bank of Abu Dhabi (NBAD) to arrange a syndicated loan that will see the Abu Dhabi lender, National Bank of Egypt and HSBC each contribute $500mn. State-owned EGPC will repay the debt over a three year period, NBAD said in a 30 November statement. A day earlier, Egypt’s Ministry of Petroleum released a statement confirming the deal, but valuing the loan at only $1.2bn.
The deal will enable EGPC to pay off almost a third of the overdue receivables it owes oil and gas producers, which the government puts at $4.9bn. The loan arrangement will be in place this month, NBAD said, enabling the third pay out within twelve months.
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