Egypt clears $5bn in oil partner arrears since June 2024, says PM

The Egyptian government has paid about $5bn in outstanding dues to foreign partners in its oil and gas sector since June 2024 under a previously announced repayment schedule, PM Mostafa Madbouly said on January 21, cited by Al Masry Al Youm. 

The move supports contractual certainty and investor confidence in one of the country’s most capital-intensive industries. The remarks came as President Abdel Fattah el-Sisi took part in the World Economic Forum in Davos. 

Madbouly explained that arrears owed to foreign energy partners stood at $6.1bn as of June 30, 2024, and are expected to decline to $1.2bn by June 30, 2026, a level he described as “normal” for the sector. The trajectory implies a net reduction of nearly $5bn, alongside Egypt’s commitment to settle monthly obligations on time.

The government’s regular payments is intended to reassure international oil and gas companies that Egypt is pursuing a consistent financial plan, supporting decisions to maintain or expand investment, accelerate exploration activity and boost production to meet rising domestic demand.

Madbouly linked the repayment drive to presidential directives aimed at strengthening Egypt’s position as a regional energy hub and a centre for gas trading, while expanding onshore and offshore exploration. He said the government is also working to build on successful experiences and offer additional incentives and facilitation to investors in oil, gas and mining.