Egypt Seeks Virtuous Output Circle: Reserves Up, Dues Down, More Output

Egypt’s November 2016 devaluation, on the back of a $12.5bn IMF loan, has boosted state coffers. Reserves are at a six-year high. Improved payments to oil and gas firms should lead to an oil output rise. Gas is already up.

Egypt’s oil ministry says that it has over the last three weeks paid down a total of $2.2bn to international oil and gas firms active in the country.

The 8 June ministry statement comes just days after the country’s central bank assistant deputy governor Rami Aboul Naga revealed that Egypt had made two $750mn payments to IOCs in May and June.

This leaves the official receivables total at just $2.3bn, down from $3.4bn at end-March, $3.5bn at end-2016 and a high of $6.3bn in 2014. These official figures are substantially lower than MEES estimates based on company filings ($4.35bn at end-Q1), although however you look at it the trend is clearly down. (CONTINUED - 1247 WORDS)

DATA INSIDE THIS ARTICLE

chart Egypt’s Foreign Reserves Continue Rising In May, Reach Highest Level Since 2011 ($Bn, End Period)
chart Egypt Gas Output (Mn Cfd): Wnd Boost In April Pushes Output To 3-Year High But Still 20% Below 2011
chart Lack Of Investment Sees Egypt Oil Output Fall To Multi-Decade Low In March, Slight Rebound In April (‘000 B/D)
chart Egypt Spending On Oil Product Subsidies Soars In Local Currency Terms, Gains In $Us More Modest