Egypt to clear $1bn debt to oil companies by June

Egypt plans to clear outstanding payments to international oil companies as it moves to rebuild investor confidence and revive exploration activity, according to a statement issued by the cabinet.

The North African country will settle $1.3 billion it owes by June 2026, the ministry of petroleum and mineral resources said.

Karim Badawi, the petroleum minister, said foreign investment was needed to increase domestic oil and gas production, thereby reducing the import bill.

Cairo’s arrears to foreign oil companies was $6.1 billion as of June 2024.

Earlier this month Egypt increased fuel prices following the spike in the cost of oil and gas as a result of supply disruptions stemming from the US-Israel and Iran war.

Egypt’s energy import bill has more than doubled since the outbreak of the war, Reuters reported. 

The government is considering asking employees to work remotely and close shops by 19:00 GMT five days a week to cut energy consumption, it said.

In February a joint Egyptian-Emirati venture announced plans to invest $516 million during 2026-27 to increase its crude production by almost 15 percent.

Egypt approved a plan to drill 100 new exploratory oil and gas wells during 2026 as part of a five-year investment plan.

The country’s extractable crude oil and gas deposits are estimated by the Arab Energy Organization at 3.3 billion barrels and 2.1 trillion cubic metres.

Further reading:

• Egypt makes five oil and gas discoveries
• Egypt to unveil new incentives for oil companies
• Egypt hikes fuel prices as a result of Iran war