Oil & Gas

Egypt has paid $1 billion in outstanding dues to foreign oil companies during the first week of July, according to a government official speaking to Asharq Business. The remaining debt stands at approximately $2.5 billion, with full repayment expected by September under the current schedule. This move is part of Cairo’s broader efforts to clear longstanding arrears owed to international energy firms.

Since June 2024, Egypt has repaid a total of $8.5 billion to foreign oil companies, signaling a renewed commitment to honoring its financial obligations in the energy sector. In May alone, the government settled $1.2 billion of its dues. These repayments are seen as crucial to restoring investor confidence and encouraging further investment in Egypt’s oil and gas sector.

In a recent interview with Al-Hayat TV, Moataz Atef, spokesperson for the Ministry of Petroleum and Mineral Resources, emphasized the need to make Egypt’s oil and gas contracts more attractive. He noted that improving terms is essential to entice foreign companies to invest in border and deep-sea exploration areas, where significant potential for hydrocarbon discoveries remains untapped.

As part of its strategy to boost exploration and production, Egypt plans to award new gas concessions to foreign companies in August. These concessions span more than 26,000 square kilometers in northern and northeastern Egypt, as well as offshore areas in the East Mediterranean. Egypt currently holds around 2.2 trillion cubic meters of proven gas reserves, ranking sixth in the Arab world behind Qatar, Saudi Arabia, the UAE, Algeria, and Iraq, according to the Arab Energy Organization.