Egypt to pay $1.3 billion in oil company arrears by June

Saturday 21 March 2026 - 17:20

Egypt has announced plans to settle $1.3 billion in arrears owed to international oil companies by June, accelerating its previous repayment schedule. The move is aimed at restoring investor confidence and boosting domestic energy production.

Egypt had accumulated around $6.1 billion in unpaid balances by mid-2024, largely due to a prolonged foreign currency shortage that delayed payments to foreign energy firms. These delays had impacted investment and contributed to a decline in gas output, although the currency situation has improved in recent months.

By clearing outstanding debts sooner than initially planned, the government hopes to encourage foreign oil and gas companies to resume drilling and exploration activities. Increased local production could reduce Egypt’s reliance on imported energy, which has risen sharply in recent years.

The Ministry of Petroleum emphasized that the accelerated payments signal a commitment to stabilizing the energy sector and supporting economic growth. Analysts say that timely repayment may also improve Egypt’s attractiveness as a destination for international energy investment.

Energy consumption has become a growing concern amid regional tensions and rising costs, prompting authorities to consider temporary measures, such as early shop closures and flexible working arrangements, to reduce electricity demand.

With these steps, Egypt aims to strengthen both energy security and fiscal stability while maintaining momentum in the oil and gas sector, which remains vital for the country’s economic development.