CAIRO, Jan 23 – Egypt has repaid about $5 billion in overdue bills owed to foreign oil and gas partners and plans to cut remaining arrears to $1.2 billion by June 30, 2026.
Speaking during a cabinet meeting on Wednesday, Prime Minister Mostafa Madbouly shared that arrears stood at $6.1 billion as of June 30, 2024. He said the government expects the balance to fall to $1.2 billion by June 30, 2026, which he described as a normal and sustainable level adding that Egypt is on schedule with it monthly payment to its foreign partners.
The payments follow a period in which Egypt delayed settlements to international oil companies due to foreign currency shortages. A constraint that weighed on investment in the sector and contributed to weaker gas output, which increased Egypt’s reliance on imports from 2022, including pipeline gas and liquefied natural gas cargoes.
Reuters also linked the recent repayment progress to fresh inflows after Egypt signed a $35 billion deal in 2024 with the United Arab Emirates for rights to develop a stretch of Mediterranean coastline.
Gas output has shown some month to month improvement, but production remains below prior year levels. Egypt produced 3,635 million cubic meters of gas in October, up from 3,525 million cubic meters in September, but down from 3,851 million cubic meters in October 2024, according to the Joint Organisations Data Initiative.
Madbouly also pointed to a meeting chaired by President Abdel Fattah El Sisi that reviewed Egypt’s plan to position itself as a regional hub for energy and gas trading stating the government wants to expand onshore and offshore exploration and widen the scope of discoveries.
He added that the state plans to offer more incentives and facilitation for investors in oil, gas, and mining to support higher investment, boost production, and meet rising domestic consumption and development needs.
