Egypt cuts foreign oil, gas dues to $1.3b from $6.1b since July 2024 – minister

Egypt has cut arrears owed to foreign oil and gas partners to about $1.3 billion from $6.1 billion in July 2024, Petroleum Minister Karim Badawy said on Thursday during a meeting with Prime Minister Moustafa Madbouly.

Badawy said the remaining dues are expected to be cleared by mid-year, with authorities committing to regular monthly payments to prevent a renewed buildup. The move marks an improvement in payment discipline that has long weighed on investment in the upstream sector.

The improved outlook has already helped attract renewed interest from international oil companies, including Italy’s Eni, Britain’s BP, US-based Apache and the UAE’s Arcius Energy, as Egypt seeks to revive exploration and output.

Cairo is pairing that effort with an expansion in drilling activity, with plans to drill more than 100 exploration wells in 2026 alongside continued development of existing fields to boost domestic oil and gas production, Badawy said.

The ministry is also accelerating the deployment of technologies such as hydraulic fracturing and horizontal drilling to tap unconventional reserves and improve recovery rates, as part of a broader push to maximise resource utilisation, he added.

At the same time, Badawy said the ministry is working to secure a stable strategic reserve of petroleum products as it navigates ongoing volatility in global energy markets.

The strategy reflects a broader shift in Egypt’s energy policy—from addressing legacy payment arrears to rebuilding output capacity and sustaining foreign investment flows in an increasingly competitive global environment.

Attribution: Amwal Al Ghad English