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Egypt’s receivables bill to IOCs remains a major point of contention. It ballooned to $6bn in 2014 and although it fell to $3bn at the end of 2015, it edged back up to $3.5bn in December according to official figures.
A lack of forex at Egypt’s Central Bank means state oil firm EGPC has struggled to obtain the cash to pay firms. In 2010 reserves stood at $36bn. They had fallen to just $15.5bn by mid-2016 before an inflow of foreign support tied to November’s $12bn IMF deal boosted the end-year figure to $24.3bn.
EGPC has been left to resort to ad-hoc agreements with IOCs in an attempt to deflect threats to slash investment or quit the country. These include allowing Canadian-listed TransGlobe and the UAE’s Dana Gas to market their oil and condensate output respectively. (CONTINUED - 2208 WORDS)