Egypt reduces foreign oil companies’ dues to $440mn, says petroleum minister

Egypt has reduced outstanding payments owed to foreign oil companies from $6.1bn at the end of June 2024 to $440mn currently, according to a statement from the Ministry of Petroleum and Mineral Resources, cited by Al Akhbar on May 20. 

Speaking during a seminar organised by the Egyptian British Business Association, Petroleum Minister Karim Badawi said the government remained committed to settling all remaining dues to foreign partners by the end of June 2026. “Success for our investment partners is a fundamental part of Egypt’s success,” the minister said, adding that the government is working to create an attractive and sustainable investment climate that supports increased production and accelerates exploration activities.

Badawi also said the ministry is coordinating with the Ministry of Electricity and Renewable Energy to update Egypt’s energy strategy, aiming to raise the contribution of renewable energy to 48% of the country’s energy mix by the end of 2028.

Executives from international and domestic companies noted improvements in Egypt’s investment environment during the event. Dalia El-Gabry, Vice President and CEO of Shell Egypt (LSE:SHEL), praised the reforms, including improved commercial agreements and better use of infrastructure, citing the Mina West offshore gas project as an example of effective cooperation.

Representatives from Harbour Energy (LSE:HBR), AngloGold Ashanti (NYSE:AU) and Lotus Gold (TSXV:OGW) also pointed to positive developments in Egypt’s energy and mining sectors, noting faster project execution, stronger investment conditions and expanding opportunities for future growth.

PM Mostafa Madbouly said in a statement on May 6 that international energy companies are planning to invest more than $19bn in Egypt’s petroleum sector over the next three years. He said Italy’s energy major Eni (BIT:ENI) had allocated investments worth $8bn, while BP (LSE:BP) plans to invest $5bn. UAE-based Arcius is expected to contribute $2bn, alongside $4bn from US energy group Apache (NYSE:APA).