Egypt Reduces IOC Arrears to $900 MM: El Molla

The total arrears that shall be collected by international oil companies (IOCs) dropped to $900 million by the end of June 2019, according to the Minister of Petroleum Tarek El Molla, Reuters reported

The arrears decreased by 25% compared to $1.2 billion in fiscal year (FY) 2017/2018 and by 62.5% compared to $2.4 billion in June 2017.

El Molla added that the total monthly payments by Egypt to IOCs stood at $700 million, and it is expected for the arrears to be settled by the end of 2019.

Arrears had accumulated after 2011 and then started declining in 2014 as Egypt began seeking ways to eliminate them and be a regional energy hub.

IOCs have been investing in the Egyptian petroleum sector in addition to collecting a proportion out of the gas and petroleum fields production till they get all their receivables settled.

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