URGENT: Egypt clears $6.1bln oil, gas arrears – minister

Egypt has successfully settled all outstanding dues owed to oil and gas investment partners, bringing them down to zero for the first time in years, the Ministry of Petroleum and Mineral Resources announced on Wednesday.

In a recorded video message, Minister of Petroleum and Mineral Resources Karim Badawi said the arrears had previously reached about $6.1 billion in June 2024, describing the full settlement as an unprecedented strategic milestone and a decisive turning point for Egypt’s oil and gas sector.

He said the achievement opens a new phase defined by stronger investor confidence, increased exploration and drilling activity, and accelerated development of production projects, adding that it reflects sustained support from President Abdel Fattah El Sisi and coordinated government efforts under Prime Minister Mostafa Madbouly.

Badawi noted that clearing the dues resolves a long-standing structural challenge that had weighed on investment and production, and has already helped restore momentum, with partners resuming exploration and development programmes at a faster pace across concession areas.

He added that Egypt’s stable investment environment, strong infrastructure, and strategic position as a regional energy hub continue to support its appeal to global investors.

The minister said the petroleum sector strategy now focuses on accelerating the development of discoveries, maximising natural resource use, and increasing production capacity to meet domestic demand and support economic growth.

Attribution: Amwal Al Ghad English