Egyptian government slashes oil partners' arrears to $714mn

Egypt’s Ministry of Petroleum and Mineral Resources has announced a further decline in outstanding payments owed to foreign oil companies, with the total arrears dropping to $714mn, down from $770mn reported earlier in April, Economy Plus reported on May 3. 

The reduction forms part of a broader government plan to eliminate all outstanding dues by the end of next month. 

Minister of Petroleum and Mineral Resources Karim Badawi said accumulated debt to investment partners in oil and gas production has dropped sharply from $6.1bn in June 2024 to current levels as of the end of April 2026. He described the progress as a key milestone in restoring financial discipline across the energy sector.

Badawi noted that regular monthly payments, alongside a steady reduction in legacy debt and the introduction of incentive measures, have played a central role in rebuilding trust with international partners. These steps are expected to encourage further investment in exploration, drilling and production development activities.

The minister added that increased investment will help increase domestic output and reduce reliance on energy imports. Earlier, UAE-based Dana Gas (ADX:DANA) confirmed it has received a $20mn payment from the Egyptian government, fully settling its outstanding receivables, according to a company statement on May 1.

The announcement coincided with a 4% year-on-year increase in production at its Nile Delta operations to 13,060 barrels of oil equivalent per day, marking the company's first period of output growth in the country after years of decline.