British BG Group Receives $350m Payment From Egypt

January 5, 2015 Ehidiamhen Okpamen Business, Energy, Finance/Money

VENTURES AFRICA – British energy firm, BG Group, has confirmed the receipt of a $350 million payment from the Egyptian government. This payment is part of the overall repayment scheme to clear debt owed to the Egyptian energy sector, for which BG Group is a participant.
The northern African country had in the last four years delayed debt payment owed to companies operating within its energy sector after been hit with an protracted political crisis. The crisis led to the ousting of long standing dictator, Hosni Mubarak, as well as short serving democratically elected President, Mohammed Morsi, leading to a long period of slowed economic growth and a surge in debt accumulation.
But according to a report by Reuters, Egypt, Africa’s third largest economy, had repaid a significant portion of its debt. As at the end of 2014, it had paid over $2.1 billion to the energy sector, significant shrinking debt owed while easing up economic activities within a sector report to be in its worst crisis in decades.
BG Group said the money paid by Egypt helped reduce it receivables locally to $920 million. It is however keen to further shrink this and has confirmed that more discussions will take place with the Egyptian government.