Egypt cuts oil debt from $6.1bn to $440m in bid to unlock new energy investments.
Oil and Mineral Resources Minister Karim Badawi said on Monday that the government now plans to settle all remaining overdue payments owed to foreign energy partners by June 10, nearly three weeks ahead of its previously announced June 30 target.
The accelerated repayment effort marks a significant milestone for Egypt, which has spent the past two years working to restore investor confidence after a period of severe economic strain, foreign currency shortages and delayed payments that affected operations across the energy sector.
According to Badawi, arrears owed to international oil companies have fallen sharply from $6.1 billion in June 2024 to just $440 million as of May 2026. The reduction is being closely watched by major energy firms operating in Egypt, one of the Eastern Mediterranean’s most important natural gas producers.
The government believes the repayment programme is already delivering results.
Badawi said several international companies have accelerated exploration and development activities, particularly in offshore Mediterranean fields. Projects involving global energy majors, including Shell, BP, Eni, Chevron, ExxonMobil and Archeos, have seen revised timelines and renewed momentum as payment concerns ease.
For years, delayed payments had become a major source of friction between Egypt and its foreign energy partners. Some companies slowed investment plans and reduced operational activity amid concerns over mounting arrears and limited access to foreign currency.
Those challenges were compounded by broader global economic pressures following the war in Ukraine and capital outflows from emerging markets, placing additional strain on Egypt’s finances between 2023 and 2024.
Since 2025, however, the country’s energy sector has shown signs of recovery. Exploration campaigns have intensified, investment flows have improved, and authorities are now seeking to build on that momentum.
By clearing its remaining debts ahead of schedule, Egypt is signalling its intention to strengthen domestic oil and gas production, secure long-term energy supplies, and reinforce its ambition to remain a leading energy hub in the Eastern Mediterranean.
Source: africabusinessinsider