The Egyptian government is set to disburse $1 billion in arrears owed to foreign energy companies early next month, according to a senior government official who spoke to EnterpriseAM.

This will be followed by a complete settlement of all outstanding dues to foreign energy firms operating in Egypt by the end of the year.

This move is part of the government’s broader effort to support and incentivize the energy sector, aiming to encourage companies to increase investments in exploration and production, particularly in the West Mediterranean and West Delta regions.

Egypt seeks to address a natural gas supply gap of approximately 2 billion cubic feet per day. To tackle this challenge, the government is securing long-term LNG contracts, accelerating exploration efforts, and expanding renewable energy projects.

Global energy giant BP has successfully launched the second development phase of its Raven natural gas field in the North Alexandria offshore concession.

The new wells are projected to produce 220 billion cubic feet of gas and 7 million barrels of condensate. Last month, BP completed the drilling of two gas wells as part of this project, with the company investing $400 million in the drilling operations.

The outstanding debts owed to foreign companies stood at $4.5 billion as of March 2024. Of this amount, $1.3 billion was paid in June 2024, $1.2 billion in September 2024, and $1 billion in November 2024, leaving only $1 billion in remaining arrears.