Egypt moves to fully clear $1.3bn dues to oil partners by end-June 2026

The Egyptian government is doubling its efforts to settle outstanding payments to foreign oil and gas partners to restore investor confidence and support production growth, Al Ahram reported on March 22, citing Petroleum Minister Karim Badawi. 

The government plans to fully clear dues by the end of June 2026, while maintaining regular monthly payments. Outstanding arrears have already fallen sharply to $1.3bn, down from $6.1bn in June 2024, according to the minister.

Badawi noted that faster payment settlement is critical to encouraging investment and increasing domestic production, thereby helping reduce Egypt’s import bill.

The ministry has implemented a series of investment incentives since H2 2024, alongside coordination with the central bank and finance ministry, helping stabilise payments and halt a decline in production linked to delayed dues in previous years.

Egypt is now pursuing an ambitious drilling strategy, targeting 101 exploratory wells in 2026 as part of a broader five-year plan to drill more than 480 wells and accelerate development of existing fields. Major international energy companies have also outlined significant investment plans. Italy’s Eni (BIT: ENI) is set to invest around $8bn, while the UK’s BP (LSE: BP) plans to allocate $5bn. UAE-based Arcius Energy is preparing to invest $2bn.

Shell (LSE: SHEL) is expanding gas exploration in the Mediterranean, while Apache (NDA: APA) is increasing its investments in Egypt’s Western Desert, with total spending exceeding $4bn.

The renewed confidence among global partners is expected to drive further exploration and production growth in the coming years.