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CAIRO, Sept 30 (Reuters) - Egypt aims to pay back $2 billionto $3 billion it owes to oil and gas companies by the end of theyear, the oil minister said on Tuesday, as the government triesto spur new investment to boost supplies.
The Arab world's most populous country faces its worstenergy crisis in decades. Debt owed to energy companies in Egypttotalled $5.9 billion in May, the latest official figureavailable.
"We are paying off $1 billion to foreign partners during thenext few days," Oil Minister Sherif Ismail told a newsconference in Cairo.
He said that after the Muslim Eid holiday that ends on Oct.8, the government will issue a tender to borrow frominternational banks to repay more of the debt.
Gas production is steadily declining in Egypt whileconsumption keeps rising but firms are reluctant to increaseinvestment after the government fell behind on payments.
It paid a first tranche of $1.5 billion to companies lastDecember, but the debt continues to mount. Some it was incurredbefore the 2011 revolt that overthrew Hosni Mubarak. (Reporting by Abdel Rahman Adel; Writing by Maggie Fick;Editing by Louise Ireland/Ruth Pitchford)
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