March 3 (Reuters) - Egypt aims to fully repay its $3.1billion debt to foreign oil and gas companies by mid-2016,around a year later than previously indicated, according to theoil ministry.
"All current operational payments have been made on time andare on track to repay any remaining arrears before mid-2016,"the ministry said in a statement to Reuters late on Monday.
After making payments of nearly $5 billion in November andDecember, arrears stand at $3.1 billion, it said.
In November, Egypt said it would repay all its debts withinsix months.
Egypt has delayed payments to oil and gas firms as itseconomy has been hammered by almost three years of instabilitysince a popular uprising ousted leader Hosni Mubarak.
Arrears began to accumulate before the revolt, but worseningstate finances saw the debts mount to billions of dollars whilethe government diverted gas earmarked for export to meetdomestic demand.
Gas production has steadily declined in Egypt whileconsumption has risen, but firms have been reluctant to increaseinvestment in exploration and production, particularly in costlyoffshore areas, until the government pays them.
(Reporting by Oleg Vukmanovic in Milan and Shadi Bushra inCairo, editing by Jason Neely)
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