Egypt Clears All Outstanding Dues Owed to Oil & Gas Companies
The clearance of arrears accumulated during the foreign currency shortage is expected to support investment activity.
Egypt has cleared all outstanding dues owed to international oil and gas companies, bringing an end to arrears that had exceeded USD 6 billion by June 2024.
The debt had accumulated during a prolonged foreign currency shortage and, according to Minister of Petroleum and Mineral Resources Karim Badawi, had weighed on investment, drilling, exploration and development programmes, contributing to lower domestic oil and gas production.
In March, Badawi said the government would settle the remaining USD 1.3 billion in outstanding payments by June. The completion of the process, he said in a cabinet statement, marks a turning point for the sector and is expected to help restore investor confidence and attract new investments.
The move comes as Egypt prepares to expand upstream activity. Authorities have approved plans to drill 100 exploratory oil and gas wells during 2026 as part of a five-year investment programme.
At the same time, the country's energy import costs have risen sharply. In March, Prime Minister Mostafa Madbouly said Egypt's monthly gas import bill had climbed to USD 1.65 billion from USD 560 million before the outbreak of the Iran war, an increase of roughly USD 1 billion per month.
According to the Arab Energy Organization, Egypt's extractable reserves are estimated at 3.3 billion barrels of crude oil and 2.1 trillion cubic metres of natural gas. Despite these resources, the country currently remains a net importer of hydrocarbons.
