Egypt has paid about $5 billion to foreign oil and gas partners as part of a broader effort to clear overdue payments and restore confidence in its energy sector, Prime Minister Mostafa Madbouly said. The repayments form part of the government’s plan to sharply reduce outstanding arrears after a prolonged foreign currency shortage disrupted payments to international energy companies, according to Newsbase.
Madbouly said arrears to foreign partners stood at around $6.1 billion at the end of June 2024, adding that the government is now targeting a reduction of the remaining balance to about $1.2 billion by June 2026. He noted that Egypt has also committed to settling current monthly invoices on time to prevent the re-accumulation of debt, as reported by Reuters.
The repayment drive has been supported by improved foreign currency inflows following major financing deals, including a $35 billion agreement with the United Arab Emirates reached last year. Officials say clearing arrears is critical to encouraging new investment in exploration and production and boosting output from existing fields, particularly in the oil and gas sector, according to statements cited by Arabnews.
Analysts say the move could help stabilize Egypt’s energy industry and reinforce its ambition to position itself as a regional energy hub. Market observers note that sustained progress on payments will be key to unlocking fresh capital from international oil companies and supporting longer-term production growth, as highlighted in industry commentary referenced by Reuters.
