Egyptian arrears to be paid off despite uncertainties

The pragmatic approach adopted by energy authorities in Cairo is a major reason why international oil companies (IOCs) are still committed to Egypt despite being owed billions of dollars for gas sold on the domestic market. According to current proposals, the bulk of the arrears will be paid off by 2018 or before. However there is still some lack of clarity both about where the financial resources will come from to enable the government to meet its obligations and also about the commercial terms for future offshore developments. These include some of the country’s most important undeveloped resources.