The Egyptian government plans to clear outstanding arrears owed to international oil companies as early as June 10, in a broader effort to revive energy investment.
Egypt intends to settle all remaining overdue payments to foreign partners in the oil sector ahead of the previously scheduled deadline, Oil and Mineral Resources Minister Karim Badawi announced on Monday during a review meeting chaired by Prime Minister Mostafa Madbouly.
According to the minister, authorities are now targeting full clearance of the outstanding amounts by June 10, 2026, instead of the earlier deadline of June 30. The accelerated timeline comes as Cairo seeks to rebuild long-term confidence among international energy majors after years marked by liquidity pressures and delayed payments.
Badawi said arrears owed to foreign partners have fallen sharply, declining from $6.1 billion in June 2024 to $440 million in May 2026. This steady reduction is seen as a key signal for companies operating in Egypt’s exploration and production sector, particularly in natural gas, where the country is one of the leading producers in the Eastern Mediterranean.
Egyptian authorities say the clearance of arrears has already helped to revive investment activity in the energy sector. The minister pointed to the acceleration of offshore exploration programmes in the Mediterranean, as well as revised timelines for several projects developed with international companies including Shell, BP, Eni, Chevron, ExxonMobil and Archeos.
The development marks a turning point after a period of significant financial strain in the Egyptian economy between 2023 and 2024. Several foreign companies had slowed operations due to foreign currency shortages and accumulated payment delays, amid global economic pressures linked to the war in Ukraine and capital outflows from emerging markets.
Since 2025, activity has gradually recovered, with renewed investment flows and intensified exploration campaigns. The Egyptian government now aims to consolidate this momentum to boost domestic oil and gas production, secure local supply, and reinforce the country’s role as a regional energy hub in the Eastern Mediterranean.
MK/AK/te/Sf/lb/as/APA