A prime example of the difficult financial and economic circumstances that the new Egyptian government faces is the billions of dollars it owes foreign oil companies.
The Oil Ministry is in the midst of negotiating new payment deals with the companies, which are among the leading investors in the country, oil executives say. Industry executives estimate that the government is $6 billion to $7 billion behind in payments to the companies for oil and natural gas they have produced and delivered to the state-owned Egypt General Petroleum Corp.
The companies are supposed to be paid within two months, but the government has been delaying payments to conserve cash.
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