Egypt Receivables Down 40%, But $5.4bn Still Owed – MEES Analysis

Exclusive MEES analysis based on company filings suggests that whilst the receivables owed to foreign oil firms in Egypt have fallen, the total remains at around $5.4bn, some $2.3bn higher than Cairo’s figure. Meanwhile, capex cuts in response to lower oil prices may stymie Cairo’s attempts to boost output.

Egyptian state-owned firm EGPC made $2.1bn-worth of payments to international oil companies (IOCs) in the dying days of 2014, reducing the total monies owed to $3.1bn according to its calculations (MEES, 2 January). However extensive MEES number-crunching indicates that the total sum owed is around $5.4bn (see table).

The difference is thought to be down to firms listing all monies owed, whilst EGPC only counts the amount it considers “overdue.” Five firms owed cash by EGPC have issued receivables updates since the payments were released at the turn of the year. Presuming these payments, totaling around $500mn or 28% of the sums owed pre-payment, are typical, this implies that Egypt owes a total of around $5.4bn to IOCs active in the country. According to these calculations, BP and Eni are likely to have received the two largest payments, of around $650mn and $380mn, with BG – the largest creditor to have reported a payment – paid $350mn. EGPC made previous payments totaling $1.4bn in early October. Taken together, and factoring in receivables creeping up in between payments, monies due are down by 40% or $3.1bn from the last full set of company filings for the third quarter of 2014. (CONTINUED - 812 WORDS)


table Egypt’S Debts To Foreign Oil Companies ($Mn)