Egypt paid $750 mln in oil company arrears, to pay same in June - REUTERS

Tue May 16, 2017 | 1:31pm EDT

Additional reporting by Omar Fahmy; Writing by Eric Knecht; Editing by Mark Trevelyan

Egypt has paid off $750 million of its debt to international oil companies and will make a second payment of the same amount at the start of next month, Central Bank Governor Tarek Amer said on Tuesday.

Egypt has struggled to pay arrears to foreign oil and gas companies operating in the country, with outstanding debt at $3.5 billion before the latest payment.

"Today $750 million was paid to international oil companies and another $750 million will be paid on June 1, meaning that there is $1.5 billion the government has committed to pay to the international companies," Amer told a news conference.

The payments are the first since Egypt paid about $100 million in the last quarter of 2016.

Circle gets respite from Egypt Woes - NATURAL GAS AFRICA

March 15th, 2016

Circle Oil, the London-based independent with modest North Africa oil and gas production, last month blamed its tight cash flow and financial pressure on the ongoing “uncertainty and irregularity of US dollar receipts" from state-owned Egyptian General Petroleum Corporation (EGPC).

On March 15, however, it had some positive news. Negotiations with the World Bank’s International Finance Corporation (IFC) on suspending a redetermination by December 2015 of its Reserve Based Lending had been postponed, said Circle, “until 15 April 2016, with any repayments required under the RBL facility, which is currently drawn to $57.5 million, being postponed until that date.”

IFC had further, said Circle, indicated its willingness to consider further waivers as may be required while the company’s strategic review, led by the UK bank Investec, continues. Options for that include sale of one or more assets, a merger, raising fresh capital, or an outright sale of Circle.

Egypt's EGAS makes first LNG payments for year -sources - REUTERS

Mon Mar 7, 2016

• First payments since terms extended to 90 days-sources
• Traders estimate EGAS owes $1 billion to LNG suppliers

By Sarah McFarlane and Oleg Vukmanovic

LONDON/MILAN, March 7 Egypt's state-owned EGAS has made its first payments to liquefied natural gas (LNG) suppliers since payment terms for deliveries were extended, trade sources said.

Egypt imports around six to eight cargoes of LNG per month and traders said that until last week EGAS had not paid suppliers since December when it extended payment terms to 90 days from the usual 15 days, due to the country's foreign currency crisis.

EGAS head Khaled Abdel Badie told Reuters his company has made all payments that were due on LNG shipments but did not specify whether these were the first payments this year.

Tapping into new revenue streams - DAILY NEWS EGYPT

Patrick Allman-Ward, CEO, Dana Gas

Regional giant Dana Gas will commit millions to E&P in the next three years

February 18, 2016

To say the last 12 months have been hard on the hydrocarbons business undersells understatement. The price of a barrel of Brent, which already plummeted from over $100 to under $50 before the end of 2014, has continued to fall throughout the year, languishing at less than $40 as 2015 drew to an end. Natural gas fared little better, with the Million British Thermal Unit (mmBTU) value dropping to less than half its December 2014 peak by November 2015, although prices rallied in the last fortnight of the year.

Despite the state of global energy markets, Dana Gas, the Middle East’s leading privately owned gas company has faith enough in Egypt and the Al-Sisi administration to commit millions in exploration and production (E&P) in the country. Dana is based in the United Arab Emirates, but hasassets in Egypt and the Kurdistan Region of Iraq. Via its subsidiary, Dana Gas Egypt, it holds 100% E&P and development rights on fields in the Nile Delta and has a minority share in an LPG plant on the Gulf of Suez.

Egypt may not meet 2016 target to pay back oil arrears – PM - ENERGY EGYPT / GULF NEWS

February 10, 2016

Lower oil and gas revenues mean the debt will ‘at least [be reduced] to a very reasonable’ level by end of year, Prime Minister Ismail says.

Egypt may miss its target of repaying the $3 billion it owes to foreign oil and gas companies by the end of 2016, the Egyptian Prime Minister said on Tuesday.

Sherif Ismail told reporters in Dubai lower oil and gas revenues mean the debt will “at least [be reduced] to a very reasonable” level by the end of year.

This would not be the first time the government has pushed backed the deadline. It previously said it would repay its arrears by mid-2015, then it said by mid-2016 before again pushing the target back to the end of the year.

Natural Gas Suppliers Consider Suspending Egypt Contracts - THE WALL STREET JOURNAL

The headquarters of state-run Egyptian Natural Gas Holding Company in
Cairo, Egypt, as photographed in 2012. PHOTO: KHALED ELFIQI/
EUROPEAN PRESS PHOTO AGENCY

By MIRIAM MALEK, Updated Jan. 22, 2016
All companies with active Egas supply positions affected by payment delays, two suppliers say

LONDON—Egyptian state-owned natural gas company Egas has missed payment deadlines for liquefied natural gas, as the country struggles to build up foreign reserves after blows to its tourism industry over the past year.

Two suppliers to Egas have confirmed to The Wall Street Journal that all companies with active supply positions in Egypt have been affected by payment delays.

Egypt’s Natural Gas Crisis | Carnegie Endowment for International Peace

BY BRENDAN MEIGHAN 

Egypt’s temporary relief from its ongoing gas crisis is the result of a lull in demand, not an improvement in industry outlook. Thursday, January 21, 2016

One of the most pressing crises facing the Egyptian economy has been the severe shortage of natural gas. The crisis itself—which involves supply cuts to factories and frequent electrical outages—has received copious coverage in the domestic and international press and has tested the patience of the Egyptian people and the business community. However, during the first week of November, officials at the Egyptian Natural Gas Holding Company (EGAS) announced that Egyptian heavy industry was now being supplied with all of its needed natural gas and other fuels. Officials from a number of companies and trade organizations confirmed this on December 2. There has also been an absence of reports of power cuts in major residential areas. Unfortunately for Egypt, this may simply be the result of a lull in demand due to moderate weather and slower production from heavy industry, not a permanent end to the shortages.

UPDATE 1-Egypt to hold international tender for 11 oil and gas blocks | Reuters

Egypt Concession Map May 2015

Sun Jan 17, 2016

CAIRO Jan 17 (Reuters) - Egypt will hold an international tender for 11 oil and natural gas exploration blocks in the Mediterranean sea and Nile Delta during the second half of fiscal year 2015-2016, Khaled Abdel Badie, head of state-owned EGAS said in a statement on Sunday.

Egypt, which used to be a net energy exporter, has turned into a net importer over the past few years due to increased consumption and falling production.

It has been on a drive to lure foreign investors back to its energy sector, many of whom left due to growing arrears. Egypt currently owes about $3 billion to international oil companies.

Petroceltic sheds stakes, mulls sale | OE Offshore Engineer

Petroceltic licenses in Egypt including the North Thekah and North Port Fouad offshore license blocks (Source: Petroceltic International plc Website)

Written by  Audrey Leon  Monday, 28 December 2015 

Petroceltic has opted to exit stakes in Greece and Egypt, following an announcement by the company's board that it has initiated a formal strategtic review of its business and assets due to breaching debt repayment obligations.

In the 23 December announcement, the company's board is also looking into several initiatives including farm-outs and a possible merger with a third party. The company currently has US$218 million in debt, and noted that pending new financing options, "the group does not have certainty on liquidity beyond early January 2016."

Petroceltic blamed the drop in oil prices and a reduction in capital investment programs in relation to its assets in Egypt and Bulgaria impacted the company's financing in 2015, requiring the company to make material repayments, which the company says it has not, to date, been in a position to satisfy. "In respect of these breaches of covenants and repayment obligations, the group has received various waivers from the lending group," Petroceltic said. "The most recent waiver under the Senior Bank Facility extends to 15 January 2016."

In Egypt, Petroceltic agreed to sell its interests in the North Thekah, North Port Fouad and the onshore South Idku exploration licenses to its joint venture partner Edison International for a net cash consideration of $9.5 million, after working capital adjustments of approximately $5.8 million. Edison is the operator of North Thekah and North Port Fouad and a joint venture partner in South Idku.

The transaction remains subject to government approvals and the waiver of pre-emption rights held by the Egyptian Natural Gas Holding Co. (EGAS). Petrocelctic expects the sale to complete by Q1 2016. 

"The sale of these interests will reduce Petroceltic’s exploration expenditure obligations in 2016 by approximately $20 million," the company said. Petroceltic expects to take a loss of approximately $1.5 million on the sale; the proceeds will be applied to repayment of debt.

The North Thekah concession was awarded in April 2013 and lies in the deepwater Nile Delta within an underexplored part of the Levantine Basin. Petroceltic had stated that the objectives, Nile Delta Oligocene and Levantine Basin Miocene plays, on trend with the giant Leviathan and Tamar discoveries offshore Israel. 

The North Port Fouad concession was awarded in September 2014 and is adjacent to North Thekah in the deepwater Nile Delta, directly adjacent to the Shorouk block where Eni recently discovered the massive Zohr gas field.

In Greece, Petroceltic concluded negotiations to exit its interest in the Patraikos licence by transferring its interest to its joint venture partners. 

The Patraikos licence is in the Gulf of Patra and covers an area of 1892sq km with water depths ranging 100-300m. Petroceltic had said that the license had unrisked mean prospective resources in the range of 80 MMbbl to 360 MMbbl for mapped prospects.

SOURCE

Egypt’s overdue debts prompt BG to further postpone linking gas fields to mid-2016 | Daily News Egypt

Project will only offset the natural decline of fields production, says official

The British Gas Company (BG) has once again postponed linking stage 9B to the Burullus fields to mid-2016 rather than the beginning of 2016, due to delayed repayment of Egyptian debts.

A senior official at the Ministry of Petroleum told Daily News Egypt that BG postponed the project for the second time, when it was agreed in 2013 that the linking will be completed by the beginning of 2015. The first postponement resulted in pushing the deadline for linking 9A to mid-2015.

The official said the total production of stage 9B will be a maximum of 500m cubic feet of gas per day.

The official said stage 9B is the largest project to begin production in 2016, but will not increase Egypt’s total production, as it would offset part of the natural decline of field productivity.

Egypt has recently agreed with BG to raise the price of natural gas produced to stage 9B from $3.95 per million British Thermal Units (BTUs) to $5.88.

The Ministry of Petroleum had earlier promised foreign companies to pay $500m of its total overdue debt, currently at $2.7bn, by the end of 2015. The agreement has yet to be met.

BG’s total production declined to about 850m cubic feet per day during the first quarter of the current fiscal year after linking stage 9A, compared to 1.1bn cubic feet at the beginning of 2014.

Foreign partners in the oil sector have delayed the linking of their gas fields in response to the government’s failure to pay overdue amounts. This is expected to lead gas production to decline until the end of 2016.

The official said total Egyptian gas production is estimated at 4.106bn cubic feet per day, although it is declining by 100m feet every month.

SOURCE