BG Group receives $350m from Egyptian government

BG Group has received a $350m repayment from the Egyptian government, it announced this morning.

 

The British gas producer, whose operations span 25 countries worldwide, said the payment reduced its domestic receivables balance in Egypt to around $1.2bn.

 

Egypt is currently facing its worst energy crisis in decades as gas production declines and demand rises. But energy companies have been reluctant to increase investment after the government fell behind on payments.

 

The latest move is part of a commitment made by the Egyptian government to repay outstanding debts to the energy industry.

 

BG Group is one of the largest producers of natural gas in Egypt, carrying out exploration, development and production in the country. In 2013, Egypt contributed 18 per cent of its total production.

 

The company has been particularly impacted by the reduction in liquefied natural gas (LNG) exports from Egypt, and is investigating options for increasing the supply of gas by working with the government to resolve the outstanding receivable balance.

 

"The company continues to investigate options for increasing the supply of gas," it said in a statement.