UK-listed Capricorn Energy (formerly Cairn), a key producer in Egypt’s Western Desert, on 26 June said it expects a strong output rebound in the second half of 2023. But it also reported a ballooning receivables figure that threatens to throw this off track.
Capricorn says it was owed $145mn by Egyptian state oil firm EGPC as of end-May, up 50% on the $97mn end-2022 figure. Of the latest figure, some $104mn is “overdue”. The end-May figure is by far the highest since Capricorn entered Egypt in 2021 as part of a 50:50 JV with local firm Cheiron with the purchase of Shell’s former ‘Bapetco’ Western Desert assets (MEES, 12 March 2021). The latest Capricorn receivables figure implies $290mn for the JV as a whole, up from $84mn at the time of the Shell purchase. (CONTINUED - 1130 WORDS)
