Egypt cuts oil partner arrears to $440 mln, targets zero by end-June: minister

Egypt has reduced overdue payments owed to foreign oil and gas companies to $440 million from $6.1 billion a year ago and plans to settle the remaining balance by the end of June, Petroleum Minister Karim Badawy said on Tuesday.

Speaking at an event organised by the Egyptian British Business Association (BEBA), Badawy said resolving arrears had been a government priority as Egypt seeks to restore investor confidence, boost hydrocarbon production, and accelerate exploration activity.

“We succeeded in reducing partners’ dues from $6.1 billion on 30 June 30 2024, to 1.3 billion in March, and now $440 million, and hopefully to reach zero by the end of next June,” Badawy said.

The reduction marks progress in addressing one of Egypt’s longest-running energy sector challenges, as mounting arrears have strained relations with international oil companies operating in the country.

Badawy said the government was working across ministries to improve the investment climate and maintain transparency in its dealings with investors.

Egypt is also updating its national energy strategy in coordination with the Ministry of Electricity and Renewable Energy, aiming to raise the share of renewables in the energy mix to 48 per cent by the end of 2028, the minister added.

The shift is expected to reduce domestic reliance on natural gas for power generation and free up gas supplies for higher-value industries, including petrochemicals and fertilisers.

Badawy said the mining sector was entering a new phase driven by structural and legislative reforms aimed at modernising regulation and attracting investment.

He also welcomed Cyprus’s approval of the development plan for the Cronos offshore gas field, saying Egypt will cooperate with Cyprus and international energy companies to use Egyptian infrastructure for processing and transporting Cypriot gas.

Attribution: Amwal Al Ghad English