This is money website4 Jul 2013 14:12
Egypt may have reached crunch point, but so far the situation remains on the right side of bearable for investors.
FTSE 100 gas giant BG Group has a large interest in the Arab nation, 20 per cent of the firm’s gas reserves came from there last year, which adds up to around 10 per cent of the firm’s earnings.
BG, down 19p at 1105.5p, has been in Egypt since the mid-1990s and has cash tied up in a number of projects. It has major stakes in five offshore wells in the Nile Delta, and has another holding in one of Egypt’s liquefied natural gas plants.
The firm is also in the middle of a crucial period. These are the peak summer shipping months, in total BG is forecast to ship 30 cargoes of gas from Egypt this year.
Egypt’s economy is certainly in a bad way. Inflation is up from 3 per cent before the revolution in 2011, to 18 per cent today. The country is reliant on recent loans from its neighbours – Qatar and Saudi Arabia lent it £2billion, Turkey £654million, and even Libya managed to lend it £1.3billion.
Read more: http://www.thisismoney.co.uk/money/markets/article-2355154/MARKET-REPORT-Gas-giant-BG-shrugs-Egyptian-crisis.html#ixzz2Y4uUuk1f
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