(Ecofin Agency) - Egyptian Petroleum Minister, Tarek El-Molla (photo), has announced that the country has reduced the debts owed to International oil companies (IOCs) from the $3.5 billion in 2014 to $3.4 billion in 2015/16.

The Minister also announced that Egypt took delivery of crude oil and natural gas from the foreign partners worth $5.4 billion during 2015/16. He said Egypt paid the partners $5.5 billion, Reuters reports.

El-Molla in January, said that Egypt's remaining debts to IOCs increased from $2.7 billion at the end of October to $3 billion at the end of December 2015.

The Ministry had said that the country intended to reduce the debts to $2.5 billion by the end of 2015 and complete the payment by the end of 2016.

Due to the delays in amortization, international oil companies had discouraged investment in the sector, but an effort to increase the price being paid for local production and repay debts had attracted new contracts signed in 2015.

Egypt has been short of hard currency since a 2011 revolt chased tourists and investors away. Reserves by the end of November 2015, almost halved to $16.4 billion.

Once an energy exporter, the country has become a net importer as a result of the dropping oil and gas production and rising consumption. Egypt is currently trying to ramp up production at recent discoveries, so as to meet its energy demands as soon as possible.

Anita Fatunji