BG Group said Cairo paid off small portion of debt

After receiving $350 million from the Egyptian government, British energy company BG Group said Monday the balance stands at around $1.2 billion.

BG Group said the Egyptian government paid down some of its debt as a result of raising funds specifically meant to address arrears in the oil and gas sector.

"While the group has been impacted by the reduction of liquefied natural gas exports from Egypt, the company continues to investigate options for increasing the supply of gas and is working with the government on resolving the outstanding receivable balance," it said in a statement.

Egypt last year accounted for 18 percent of the natural gas production for BG Group, making the company one of the largest producers in the country.

BG in January said the Egyptian government wasn't honoring agreements regarding its share of natural gas from Egyptian fields, saying diversions into the domestic market were higher than expected.

Only one cargo of LNG was taken from Egypt by BG for the second quarter. With declining upstream production, the company said it expects LNG operations in the country will be limited going forward.