Egypt slashes oil, gas partner arrears 88% to $714M, eyes full clearance in June

CAIRO – 2 May 2026: Egypt has reduced outstanding arrears owed to oil and gas partners to $714 million in April, down from $6.1 billion in June 2024, an 88.3% decline.

Minister of Petroleum and Mineral Resources Karim Badawi said the government aims to fully settle these obligations and bring arrears to zero by the end of June.

Badawi added that the regularization of monthly payments, a reduction in accumulated debt, and a package of incentive measures have strengthened partners’ confidence, encouraging increased investment in research, exploration, and production development.

This, in turn, supports domestic output and helps reduce the import bill, he added.

The government, in recent years, has been committed to cutting down accumulated debts owed to foreign energy companies.

In March, President Abdel Fattah El-Sisi stressed the importance of the timely settlement of financial obligations to international oil companies, noting that maintaining regular payments is essential to encourage further exploration and production activity.

He also called for the establishment of a clear framework to strengthen exploration, research, and development efforts, in order to meet domestic energy demand and reduce reliance on imports.