CAIRO — Egypt has paid around $5 billion in overdue dues to foreign oil and gas partners, a senior government official said, marking a major step in efforts to reduce long-standing arrears that have weighed on energy investment and domestic production.
Prime Minister Mostafa Madbouly said the payments were part of a structured programme to clear accumulated debts owed to international oil and gas companies operating in Egypt, including several major global producers and service firms.
Outstanding arrears to foreign partners stood at about $6.1 billion at the end of the 2023/24 fiscal year, according to government figures. Authorities now aim to reduce that amount to roughly $1.2 billion by June 2026, a level officials describe as manageable for routine operational settlements.
Delayed payments have long been a key concern for international energy companies, as Egypt’s prolonged foreign currency shortages limited the state’s ability to meet its obligations. The arrears discouraged new investment and contributed to declining domestic gas production.
Lower output forced Egypt, once a regional gas exporter, to increase imports of liquefied natural gas to meet domestic demand, adding pressure to the country’s balance of payments.
Madbouly said the government is also committed to settling current monthly invoices on time, a move aimed at restoring confidence among foreign partners and encouraging renewed exploration and production activity.
Improved access to hard currency, supported by external financing and major investment agreements signed in 2024, has enabled Cairo to accelerate repayments. Analysts say maintaining fiscal discipline will be critical if Egypt is to stabilise energy output and reduce its reliance on costly fuel imports.