Improved contractual terms and timely payments go a long way in Egypt. Foreign operators in the country have long cited tight contractual terms – especially low domestic gas prices – and receivables as the main reasons for stalling investment. With receivables dropping, at least for the larger firms, commitments to drill and invest are picking up.
Painfully aware of the recent downward trajectories of both oil and gas output, Cairo has offered companies improved contractual terms to encourage them to resume activity (MEES, 26 September). However, continued concerns over slow repayment of arrears by state firms EGPC and EGAS continue to limit investment and field activities. (CONTINUED - 2030 WORDS)
