Cairo, Egypt – Egyptian Minister of Petroleum and Mineral Resources, Karim Badawi, announced in a recorded video statement broadcast on the ministry’s official platforms in both Arabic and English that the Egyptian government has officially completed the settlement of all outstanding payments owed to foreign oil companies operating in the country. These arrears have now been reduced from billions of dollars to zero.
The minister affirmed that Egypt has successfully overcome one of the biggest challenges facing the energy sector in recent years. He emphasized that this step lays the foundation for a completely new phase, the main focus of which is “increasing production and attracting foreign direct investment.”
Badawi added that this exceptional achievement strongly restores confidence in the investment climate of the Egyptian petroleum sector and removes one of the most significant obstacles that had hindered the flow of new capital. This paves the way for a comprehensive boom and intensified activity in exploration and development of fields, as well as accelerating the implementation of stalled production projects.
A gradual repayment plan and an end to the foreign currency crisis
The settlement of these arrears has followed an accelerated timeline, reflecting the government’s commitment. The value of the outstanding payments decreased from a peak of $6.1 billion on June 30, 2024, to $1.3 billion in March 2026, and then continued to decline to $714 million in April 2026. It reached $440 million in May 2026 before being fully cleared this month.
The structural roots of these arrears lie in a prolonged period of foreign currency shortages that plagued the country, leading to delayed payments to partners and a prolonged negative impact on investment and natural gas production rates. This crisis has been significantly mitigated by recent economic reforms.
A message of confidence and competitive advantages for the global investment community
The Minister of Petroleum delivered a decisive message to the global investment community, affirming that Egypt is a country that honors its commitments and fulfills its financial obligations in full. He emphasized that Egypt possesses the genuine political and economic will to provide a stable and attractive business environment that serves the mutual interests of all parties.
Badawi highlighted the exceptional advantages that qualify Egypt to be the leading energy destination in the region, based on its strategic geographic location, advanced infrastructure, and integrated production and export facilities. He also noted Egypt’s extensive human capital.
The minister noted that the sector is already witnessing a strong return of investment momentum, with international partners resuming drilling and exploration programs at an accelerated pace. He also emphasized that developing offshore fields—particularly in the deep waters of the Mediterranean—presents a highly complex technical and investment challenge requiring advanced technologies and substantial investments spanning several years. He explained that this has become both feasible and highly attractive following the settlement of all outstanding financial obligations and the establishment of a safe and stable operating environment.
