Badawi noted that Egypt will settle around $1.3 billion in arrears owed to international oil and gas companies by June 2026.
Egypt aims to fully settle outstanding arrears owed to foreign partners in oil and gas production by the end of June 2026, Petroleum Minister Karim Badawi said, as part of efforts to restore investor confidence and support domestic output growth.
Badawi noted that Egypt will settle around $1.3 billion in arrears owed to international oil and gas companies by June 2026.
The move comes in line with directives from President Abdel Fattah El-Sisi to accelerate the clearance of arrears, which the government views as key to unlocking new investments and reducing the country’s import bill.
Badawi said the ministry has already reduced outstanding arrears from around $6.1 billion in June 2024 to approximately $1.3 billion currently, with coordination underway to complete full settlement by mid-2026, while maintaining regular monthly payments to partners.
He noted that a series of investment incentives introduced since the second half of 2024, alongside closer coordination with institutions including the Central Bank of Egypt and the Ministry of Finance, have helped contain arrears and stabilize payment flows.
According to the minister, these measures contributed to halting a decline in production that had resulted from slower investments since the 2021/2022 fiscal year, amid delayed payments and broader economic challenges.
The improved payment structure has since supported a recovery in exploration and field development activity, with the sector now pursuing an ambitious drilling plan targeting around 101 exploratory wells in 2026, as part of a broader five-year strategy to drill more than 480 wells nationwide.
Badawi added that renewed confidence among international partners has encouraged major energy companies to expand their operations in Egypt over the coming years. Planned investments include around $8 billion by Eni, $5 billion by BP, and $2 billion by Arcius Energy.
He also pointed to expanded activity by Shell in Mediterranean gas exploration, as well as increased investments by Apache Corporation in Egypt’s Western Desert, with total investments exceeding $4 billion.
The strategy is part of broader efforts to increase local oil and gas production, strengthen energy security, and reduce reliance on imports.
