Egypt’s Ministry of Petroleum and Mineral Resources is moving forward with an ambitious plan to repay around $750 million in outstanding dues owed to foreign oil companies operating in the country by the end of the first quarter of 2026, according to a senior government official told Al Arabiya Business.

The official indicated that the payments will be made in two installments, the first, between $400 million and $500 million, before the end of 2025, and the second, ranging between $250 million and $350 million, during the first quarter of 2026.

The initiative aims to reduce the backlog of arrears in Egypt’s petroleum sector, which are currently estimated at between $1.7 billion and $2 billion.

He explained that repaying these dues is the first pillar of the government’s broader strategy to restore growth in Egypt’s gas production, as it strengthens investor confidence and encourages international partners to inject fresh capital into exploration and development projects.

The official emphasized that the Egyptian government seeks to fully resolve the issue of accumulated arrears by next year, as part of a new incentive program designed to attract more investment, particularly in the oil and gas sector.

 Adhering to a monthly payment mechanism has now become a permanent policy, aimed at preventing future debt accumulation and sustaining the commitment of foreign partners to expand development across their concession areas.

On August 10, Prime Minister Mostafa Madbouly directed during a meeting with Central Bank Governor Hassan Abdallah and Petroleum Minister Karim Badawi that efforts be intensified to ensure timely repayment of dues according to the agreed schedules.

He also underscored the importance of continuing to attract foreign investment and removing any barriers facing investors in this strategically vital sector.

As part of the settlement process, the Ministry of Petroleum is preparing two additional liquefied natural gas (LNG) shipments for export on behalf of foreign partners during November 2025, following a previous cargo exported for Shell.

 This will bring the total number of shipments to three for the month, with each carrying around 150,000 cubic meters of LNG through the Idku liquefaction and export complex.