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The BG Group has delivered a pessimistic assessment of its Egypt operations, as its quarterly report shows that production more than halved in the space of a year and its receivables continue to grow.
The firm’s net gas output in Egypt slumped by 52% on the year to just 57,000 boe/day (340mn cfd) for Q2, a drop of 14% on the previous quarter. While an expansion project will temporarily arrest the decline, BG is unwilling to make further investments until the government addresses its debt to the company.
“Release of funds for any further development is contingent upon an improvement in the investment climate, including a significant improvement in the outstanding receivable position. Discussions with the Egyptian government are ongoing,” BG said in its quarterly filings.
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