Egypt aims to reduce arrears and claims to have paid $5 billion to foreign oil partners
Egypt has settled approximately $5 billion in outstanding payments to international oil and gas partners and plans to reduce the remaining debts to $1.2 billion by June 2026, according to Prime Minister Mostafa Madbouly.
As of June 30, 2024, arrears amounted to $6.1 billion, he stated, noting that the government was also addressing the partners’ monthly invoices.
Egypt faced a foreign currency shortage that led to delays in payments to international oil companies operating within its borders. This situation hindered investment and resulted in a decline in gas production, compelling the country to depend significantly on imports starting in 2022, whether from neighboring Israel or expensive LNG shipments.
Following a significant $35 billion agreement in 2024 with the United Arab Emirates for the rights to develop a prime stretch of Egypt’s Mediterranean coast, Egypt began repaying oil companies.
In October of the previous year, Egypt’s gas production reached 3,635 million cubic meters, showing a slight increase from 3,525 million cubic meters in September. However, this figure is lower than the 3,851 million cubic meters recorded in October 2024, as reported by the Joint Organizations Data Initiative.
