BG Group’s share price rises as Egyptian government repays $350m debts

BG Group's share price jumped this morning on the back of news that the Egyptian government was repaying outstanding debts of $350m (£233m). 

 

The payment is part of a scheme to clear debt owed by the Egyptian energy sector, where the British oil and gas company is heavily focused. 

 

Today's payment reduces the company's domestic receivables balance in Egypt to around US$920m. 

 

The repayment of debt has been delayed by four years because of the political situation, which has seen the ousting of long-standing dictator Hosni Mubarak, as well as the short-lived tenure of democratically elected President Mohammed Morsi. 

 

BG said it was now in discussions with the government over paying off the outstanding balance. It is also looking at options to increase the supply of gas into the country.  

 

BG's share price rose 3.8 per cent in early trading.