Egypt plans to fully settle outstanding arrears owed to international oil companies by June 10, accelerating payments as part of broader efforts to restore investor confidence and revive energy sector investment.
The announcement was made by Petroleum and Mineral Resources Minister Karim Badawi during a meeting chaired by Prime Minister Mostafa Madbouly, according to official statements.
Authorities said the move marks a faster-than-planned clearance of outstanding obligations, which were previously expected to be fully paid by June 30.
Egypt has significantly reduced its arrears to foreign oil partners, cutting them from about $6.1 billion in June 2024 to roughly $440 million in May 2026, reflecting a sustained effort to resolve long-standing payment delays.
The government says the accelerated repayment schedule is intended to stabilise relations with international energy companies and encourage renewed investment in exploration and production activities.
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The oil and gas sector includes major global firms such as Shell, BP, Eni, Chevron and ExxonMobil, which operate in Egypt’s upstream energy projects.
Officials say the reduction in arrears has already contributed to renewed momentum in offshore exploration in the Mediterranean and the advancement of several production timelines.
Egypt’s energy sector had faced significant pressure in 2023 and 2024, when foreign exchange shortages and delayed payments led some international companies to scale back operations.
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The situation was compounded by global economic disruptions linked to the war in Ukraine and capital outflows from emerging markets, which strained Egypt’s external financing position.
Since 2025, however, activity has gradually recovered, with renewed investment commitments and expanded exploration programmes signalling improved investor sentiment.
Authorities are now seeking to consolidate these gains by strengthening domestic production of oil and natural gas, ensuring energy security and reinforcing Egypt’s position as a key regional energy hub in the Eastern Mediterranean.
Analysts say the accelerated clearance of arrears could further improve Egypt’s investment climate, particularly in upstream energy, where long-term capital commitments depend heavily on payment certainty and regulatory stability.
