Egypt plans to repay $600mn in dues for international oil firms by May

The Egyptian Ministry of Petroleum and Mineral Resources plans to repay around $600mn owed to international oil and gas companies operating in the country before the end of May, a government official told Economy Plus on April 19. 

The payments, scheduled across April and May, represent roughly 46% of total arrears estimated at $1.3bn, with the remaining $700mn expected to be cleared in June.

The ministry intends to disburse the funds in two tranches, $350mn followed by $250mn. as part of a broader strategy to eliminate outstanding debts, stabilise financial relations within the sector, and encourage renewed investment in exploration and production.

Separately, the cabinet approved two new agreements for oil and gas exploration, with a combined minimum investment of $85mn. One agreement, involving the Egyptian Natural Gas Holding Company and Chevron (NYSE:CVX) Egypt Holdings, will focus on exploration in the Lotus offshore block in the Mediterranean Sea. The second agreement covers multiple development areas across the Eastern Desert, Gulf of Suez, and Western Desert, and will be implemented with the General Petroleum Company.

Meanwhile, Egyptian Drilling Company plans to invest approximately $100mn during the FY 2026/27 to acquire three new onshore rigs and upgrade its existing fleet, increasing its total number of rigs to 72. The company is majority-owned by the Egyptian General Petroleum Corporation, with a 25% stake held by Abu Dhabi’s wealth fund ADQ.