Egypt to settle $750M in arrears to foreign oil companies by early 2026

CAIRO - 12 November 2025: Egypt’s Ministry of Petroleum and Mineral Resources is implementing a comprehensive plan to repay approximately $750 million owed to foreign oil companies operating in the country by the end of the first quarter of 2026, a senior government official told Al Arabiya Business.

According to the official, the repayments will be made in two phases — the first, ranging between $400 million and $500 million, is scheduled before the end of 2025, while the second installment, estimated at $250 million to $350 million, will be completed during the first quarter of 2026.

This initiative aims to reduce the accumulated arrears in Egypt’s petroleum sector, currently estimated at $1.7–2 billion.

The official explained that clearing these dues is central to Egypt’s strategy to revive gas production growth, as it helps restore investor confidence and encourages international energy partners to reinvest in exploration and development projects.

He added that the government plans to eliminate all outstanding arrears by next year as part of a new incentive framework designed to attract greater foreign investment, particularly in the oil and gas sector.

He further noted that the monthly payment mechanism has now become a permanent policy, ensuring that debts do not accumulate again while promoting the continued expansion of development operations across existing concession areas.

On August 10, Prime Minister Mostafa Madbouly instructed during a meeting with Central Bank Governor Hassan Abdalla and Petroleum Minister Karim Badawi to intensify efforts toward settling dues according to the agreed timetable.

He also stressed the need to sustain foreign investment inflows and remove obstacles that might hinder participation in this strategically significant sector.

As part of the settlement process, the Ministry of Petroleum is also preparing two additional liquefied natural gas (LNG) shipments for export on behalf of foreign partners in November 2025, following an earlier cargo exported for Shell.

This will bring the total number of shipments for the month to three, each carrying approximately 150,000 cubic meters of LNG through the Idku liquefaction and export complex.