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Wednesday, 13 July 2016

Arrears to Shell, BG grow to USD 1.1 bn on continued failure to make good on payments -Source

The state’s arrears to Royal Dutch Shell and BG have increased to USD 1.1 bn, up from USD 1 bn in April, according to a source close to the talks that are apparently going on between Shell and the government. The bill has risen on the back of the government failing to pay USD 50 mn on gas from the 686 mcf/d Burullus and Rosetta concessions, the source tells Al Borsa. Furthermore, the government failed to make good on a USD 400 mn it promised to pay Shell and BG by June. BG halted developments on its Phase 9B project after failing to reach a satisfying agreement with the Oil Ministry on its receivables. BG accounts for over 30% of money owed to IOCs.

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