A source with the petroleum sector told Egypt Oil&Gas that Egypt owes $3.6b in backdated arrears to international oil companies (IOC). He added that the government is committed to paying all overdue amounts and has reached a monthly payment plan agreement with IOCs to ensure that they continue exploration and concession development in the country.

This comes as Egypt signed several agreements to drill 12 new wells during 2017. The new investments are estimated at $595m to produce more than 1bcf/d of gas.The first agreement, worth $450m, concerns Nile Delta concession, the second agreement, worth $85m, will be in El Temsah concession, while the third agreement, worth $60m, is relate to work in Ras El Bar concession. Furthermore, the Egyptian Natural Gas Holding Company (EGAS) is executing 8 development projects that include drilling 14 exploratory wells. This will increase Egypt’s natural gas production to 4360mcf/d.