SHARE
Image courtesy of BG Group.

The Egyptian government repaid $350 million of outstanding debt owed to UK-based BG Group Monday.

The payment reduces BG’s domestic receivables balance in Egypt to about $1.2 billion.

The company is working with the government to resolve the remaining outstanding receivable balance.

The payment is part of a larger effort by Egypt’s government to pay back debts owed to oil and gas companies.

Egypt has been dealing with its worst energy crisis in decades as gas production in the country falls and demand spikes.

Energy companies have been hesitant to boost their investments in Egypt since the government fell behind on its payments.

BG Group said although it has been impacted by the reduction of LNG exports from Egypt it continues to investigate options for increasing its gas supply in the country.