Arab Finance: The Egyptian government has reduced dues to international oil companies (IOCs) to approximately $770 million now from $6.1 billion in June 2024, with a commitment to reaching zero dues before the end of June 2026, Minister of Petroleum and Mineral Resources Karim Badawi said.

Badawi elaborated that this will enhance investor confidence and support increased drilling and exploration activities in the country, especially given the recently introduced flexible business models.

The minister previously noted that Egypt was set to settle $1.3 billion in arrears to IOCs by the end of June 2026.

He asserted that the energy sector remains the primary driver of the state’s economic growth, emphasizing that gas and oil will continue to be a cornerstone of the global energy mix for decades to come.

The government is exerting effort to boost production from existing fields and accelerate exploration activities, in addition to maximizing added value through infrastructure in the refining, petrochemical, and floating storage and regasification unit (FSRU) sectors. Moreover, it is seeking to increase the mining sector's contribution to the gross domestic product (GDP) to approximately 6%.

His remarks came during the ‘Mediterranean and Red Sea’ Exploration Summit, held in the New Capital from April 28th to 30th.

The event gathers 150 exploration experts from Egypt and 15 other countries, representing approximately 40 international companies. It featured 40 technical presentations highlighting key experiences, expertise, and best practices in the field of exploration and production.

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