Egypt repays all arrears to global energy companies

Egypt has cleared all its dues to global oil and gas companies, petroleum minister Karim Badawi has said.

The arrears accumulated following a prolonged foreign currency shortage and peaked at more than $6 billion in June 2024.

The accumulation had a direct impact on investment, drilling, exploration and development programmes, leading to lower levels of domestic oil and gas production, the minister was quoted as saying in a cabinet statement.

The payment marks a turning point for the oil sector, restoring investor confidence and drawing new investments, Badawi said.

In March, the minister said the government would settle the remaining $1.3 billion it owed by June.

In the same month, Prime Minister Mostafa Madbouly said Egypt’s gas import bill had increased by $1 billion a month since the outbreak of the Iran war.

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The country’s monthly gas import bill reached $1.65 billion from $560 million before the war started, he said.

Egypt has approved a plan to drill 100 new exploratory oil and gas wells during 2026 as part of a five-year investment plan.

The country’s extractable crude oil and gas reserves are estimated by the Arab Energy Organization at 3.3 billion barrels and 2.1 trillion cubic metres, respectively. However, the country is currently a net importer of hydrocarbons.