Egypt has fully settled all outstanding arrears owed to oil and gas investment partners, cutting them to zero after dues had reached approximately $6.1 billion in June 2024, according to Minister of Petroleum and Mineral Resources Karim Badawi.

Badawi described the move as an unprecedented strategic milestone for the country and a major turning point for Egypt's petroleum sector, saying it opens a new phase defined by greater confidence, stronger investment activity, higher production, and accelerated growth.

The minister attributed the achievement to the continued support and oversight of President Abdel Fattah El-Sisi, as well as coordinated efforts across the government under Prime Minister Mostafa Madbouly and the cooperation of all relevant entities.

Being far more than a financial transaction, clearing the outstanding arrears had been one of the most significant challenges facing the sector in recent years, directly affecting investment activity, drilling and exploration programs, field development efforts, and ultimately domestic oil and gas production levels, Badawi explained.

He added that the full settlement of these dues has helped restore confidence in Egypt's petroleum investment environment and removed a key obstacle to the flow of new capital. As a result, the sector is expected to enter a more active period of exploration, development, and production growth.

Badawi said the move sends a clear message to the international investment community that Egypt honors its commitments and remains committed to providing a stable and attractive business environment that supports the interests of both investors and the state.

He also highlighted Egypt's competitive advantages as a regional energy investment destination, citing its strategic geographic location, advanced infrastructure, integrated production and export facilities, extensive technical expertise, and the significant opportunities available across the oil, gas, and broader energy sectors.

Moreover, the minister noted that investment momentum has already begun to recover, with international partners accelerating drilling, exploration, and development activities. This renewed activity has translated into higher levels of petroleum operations and increased investment across multiple concession areas.

He pointed to offshore developments, particularly in the deep waters of the Mediterranean, as an example of the scale of investment required to boost production. Such projects involve advanced technologies, substantial capital expenditures, deep-water drilling operations, and the construction of extensive pipeline and transportation networks to connect discoveries to production and processing facilities. These developments typically require years of work before reaching the production stage.

Against this backdrop, Badawi said the ministry's strategy remains focused on accelerating the development of discoveries and bringing them into production as quickly as possible. The objective, he explained, is to maximize the utilization of Egypt's natural resources, add new production capacity, support economic growth, and meet domestic demand for oil and gas.

Looking ahead, the minister said the resolution of the arrears issue marks the beginning of a stronger and more sustainable phase for the sector, centered on increasing production, attracting investment, improving resource efficiency, and strengthening energy security. These efforts, he said, will contribute to Egypt's broader sustainable economic development goals.

Badawi concluded by thanking Egypt's investment partners for maintaining their confidence in the country's petroleum sector throughout recent challenges, noting that their support played an important role in achieving the milestone. He also expressed appreciation to employees across the petroleum and mineral resources sector for their efforts in helping deliver what he described as a historic achievement and the start of a new era of growth and progress.

© 2026 All Rights Reserved Arab Finance For Information Technology Provided by SyndiGate Media Inc. (Syndigate.info).