Egypt has fully cleared its outstanding arrears to oil and gas investment partners, bringing the balance down to zero for the first time in years, Minister of Petroleum and Mineral Resources Karim Badawi announced.

The arrears had stood at around $6.1 billion in June 2024.

Badawi said the move marks a major turning point for Egypt’s oil and gas sector, opening a new phase focused on restoring investor confidence, attracting fresh investments, and increasing production rates.

He added that the achievement came with the support and continuous follow-up of President Abdel Fattah El-Sisi, as well as close coordination across the government under Prime Minister Mostafa Madbouly.

The minister said clearing the arrears was not merely a financial settlement, but a structural solution to one of the key challenges that had weighed on the sector in recent years.

The accumulation of arrears had directly affected investment flows, drilling, exploration, and development programs, which in turn impacted domestic oil and gas production levels.

Badawi noted that the full repayment has helped restore confidence in Egypt’s petroleum investment climate and removed one of the main obstacles to the flow of new capital into the sector.

He said this paves the way for a more active phase in exploration, field development, and the acceleration of production projects.

Egypt’s message to the global investment community is now clear, Badawi said: the state honors its commitments, supports investment, and is working to provide a stable and attractive business environment that serves the interests of all parties.

The minister added that Egypt has strong fundamentals that position it as one of the region’s leading energy investment destinations, supported by its strategic geographic location, advanced infrastructure, integrated production and export facilities, technical expertise, and promising opportunities across oil, gas, and energy.

Badawi said the past period has seen renewed investment momentum, with partners resuming drilling, exploration, and development programs at a faster pace.

This has contributed to higher petroleum activity and increased investment across various concession areas, he added.

He also noted that developing offshore fields, particularly in the deep waters of the Mediterranean, remains a major technical and investment challenge due to the advanced technologies, large capital expenditure, drilling works, pipelines, and gas transmission networks required to connect fields to production facilities and processing plants.

Such projects, he said, require years of work before entering production.

Badawi stressed that the petroleum sector’s strategy is based on accelerating the development of discoveries and bringing them into production as quickly as possible, while maximizing the use of natural resources and adding new production capacities to support the national economy and meet local market needs.

He said clearing the arrears represents a starting point for a stronger and more sustainable phase for Egypt’s petroleum sector, centered on increasing production, maximizing investments, improving resource efficiency, and securing energy supplies in support of sustainable economic development.

The minister also thanked investment partners for their continued confidence in Egypt’s petroleum sector, saying that this trust helped the country overcome challenges and achieve this milestone.

He also expressed appreciation to workers across the petroleum and mineral resources sector for their efforts in reaching this result.