(Ecofin Agency) - In Egypt, BG has postponed activities at some development projects in the country; following its inability to come to an agreement over the price of gas with the government.

The development areas include several deepwater wells in the West Nile Delta in Egypt.

“BG has stopped work at 9A+ and 9B after failure to reach an agreement on the fixed price to be paid for extracted gas, and it withdrew rigs working on the 9A+ wells on the seventh of March,” an official at the Egyptian General Petroleum Corp (EGPC) told LNG World news.

The official added that BG Egypt is planning to increase the current $3.95 price it is being paid for gas to $5.88/MmBTU.

Over the past year, Egypt has increased the price it pays many foreign oil firms for natural gas production so as to attract more investment in the sector. The country has also late in paying foreign petroleum companies their debts, which attained nearly $3 billion at the end of December 2015.

The official emphasized that BG Egypt has made organizing a timetable for settlement of the money owed a condition for resumption of activities at the suspended development wells.

Meanwhile the Ministry of Petroleum in a statement issued by the Spokesperson Hamdi Abdel-Aziz denied the postponement of activities by BG.

“The areas 9A and 9B area did not come in operation yet as there are still negotiations on gas development in 9B,” it said.

A onetime energy exporter, Egypt has turned into a net importer due to the falling oil and gas output and rising consumption. The country is struggling to fast track production at recent finds to meet its energy needs as soon as possible.

Anita Fatunji