Capricorn Energy receives $30 million in payments from Egypt

(Reuters) – Oil producer Capricorn Energy said on Thursday it received a payment of $30 million this week from the Egyptian government after its debt to the company rose to $169 million last year.

Chief Executive Randy Neely said: “Throughout my twelve years working in Egypt, and looking further back, the Government of Egypt has always honoured its financial obligations to international investors.”

The company, which is revamping its strategy to focus on its Egyptian assets after two shareholder revolts over merger plans, has halted new drilling and investment in the country until it agrees with state-owned Egyptian General Petroleum Corporation (EGPC) on a payment plan.

Capricorn on Thursday posted a 2023 loss after tax of $144 million, wider than its loss of $67.1 million a year earlier.

At end-2023, receivables due from Egypt stood at $168.7 million, having increased by $71.9 million over the year, and $143.1 million of that was overdue, the company said.

The company, as of the date its financial statements were approved, said that along with Egyptian partner Cheiron it was “seeking waivers from lenders for several potential events of default under the facilities, all related to a lack of a payment plan from EGPC to resolve the receivables position”.

The company declined to comment further on the waivers.

(Reporting by Deep Vakil in Bengaluru; editing by Jason Neely)

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