CAIRO - 10 June 2026: Egypt has settled all outstanding arrears owed to its oil and gas investment partners, reducing the balance to zero for the first time in years, Minister of Petroleum and Mineral Resources Karim Badawi said.
The arrears had reached nearly $6.1 billion in June 2024.
Badawi said the full repayment represents a key milestone for Egypt’s oil and gas sector and signals the beginning of a new phase aimed at strengthening investor confidence, attracting new capital, and increasing production.
He said the achievement was made possible through the continuous support and follow-up of President Abdel Fattah El-Sisi, as well as coordination across the government under Prime Minister Mostafa Madbouly.
According to the minister, settling the arrears is not only a financial step, but also a fundamental solution to one of the main challenges that had pressured the sector in recent years.
The build-up of overdue payments had affected investment activity, drilling, exploration, and field development programs, which in turn weighed on domestic oil and gas production.
Badawi said clearing the dues has helped rebuild confidence in Egypt’s petroleum investment climate and removed a major barrier to the flow of new investments into the sector.
He added that the move paves the way for stronger exploration activity, faster field development, and accelerated implementation of production projects.
The minister said Egypt is sending a clear message to the global investment community that the state is committed to meeting its obligations, supporting investors, and providing a stable and attractive business environment.
Badawi also highlighted Egypt’s strong position as a regional energy investment destination, supported by its strategic location, advanced infrastructure, integrated production and export facilities, technical expertise, and promising opportunities in oil, gas, and energy.
He noted that investment momentum has returned in recent months, with partners resuming drilling, exploration, and development programs at a faster pace across several concession areas.
The minister added that offshore field development, particularly in the deep waters of the Mediterranean, remains a major technical and investment challenge due to the advanced technology, large investments, drilling operations, pipelines, and gas transport networks required before production begins.
Badawi said the petroleum sector’s strategy focuses on accelerating the development of discoveries and bringing them into production as quickly as possible, while maximizing the value of Egypt’s natural resources and adding new production capacity to support the economy and meet local demand.
He said clearing the arrears marks a starting point for a stronger and more sustainable phase for Egypt’s petroleum sector, focused on increasing production, expanding investments, improving resource efficiency, and securing energy supplies.
Badawi thanked investment partners for their continued confidence in Egypt’s petroleum sector, saying their trust helped the country overcome challenges and reach this milestone.
He also expressed appreciation to workers across the petroleum and mineral resources sector for their efforts in achieving this result.
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