Pharos Energy has taken a step forward in stabilising its financial exposure in Egypt following the receipt of $20 million from the Egyptian General Petroleum Corporation (EGPC). The payment significantly reduces the company’s outstanding receivables in the country, now standing at approximately $7.4 million, the lowest level since 2021.
The updated commercial terms, which were finalised in late 2021, were designed to improve economic returns for the operator and support investment continuity in Egypt’s mature producing basins.
Egypt has historically presented challenges for upstream operators with regard to receivables, and Pharos was no exception. The sizeable reduction in outstanding balances not only reflects improved operational alignment with the state but also signals strengthened cash flow visibility, which may influence the pace and scale of future capital deployment. The company has indicated that it is preparing for a drilling programme in partnership with IPR, with the objective of increasing production from existing assets under the revised concession terms.
Pharos Energy Plc (LON:PHAR) is an independent energy company with a focus on delivering long-term sustainable value for all stakeholders through regular cash returns and organic growth, underpinned by a robust cash flow and resilient balance sheet.
