Egypt’s Minister of Petroleum and Mineral Resources, Karim Badawi announced that the country has fully cleared all outstanding dues owed to oil and gas investment partners, bringing the balance down to zero dollars for the first time in years.
The minister described the move as a major strategic milestone for Egypt’s petroleum sector, noting that overdue payments had reached around $6.1 billion in June 2024.
Badawi said settling the financial obligations marks a turning point for the oil and gas industry, creating a new phase focused on rebuilding confidence, attracting investment, and increasing domestic production.
He explained that the accumulated dues had previously affected investment flows, drilling programs, exploration activities, and field development plans, which in turn impacted local oil and gas output.
According to the minister, the full repayment of arrears has restored investor confidence in Egypt’s energy sector and removed one of the key obstacles facing new capital inflows, paving the way for expanded exploration, field development, and faster implementation of production projects.
Badawi emphasized that Egypt is sending a clear message to global investors that it honors its commitments and is committed to creating a stable and attractive business environment that supports mutual benefits.
He highlighted Egypt’s advantages as an energy investment destination, including its strategic geographic location, advanced infrastructure, integrated production and export facilities, skilled workforce, and promising opportunities in oil, gas, and energy.
The minister also pointed to renewed investment activity in recent months, with international partners resuming drilling, exploration, and development programs at a faster pace, contributing to increased petroleum activities and higher investment levels across concession areas.
He noted that developing offshore fields, especially in the deep waters of the Mediterranean, remains technically challenging and requires advanced technologies, large-scale investments, deep drilling operations, and extensive infrastructure to transport gas to processing facilities.
Egypt’s petroleum strategy focuses on accelerating the conversion of discoveries into production, maximizing the use of natural resources, adding new production capacity, supporting the national economy, and meeting domestic energy demand.
Badawi stressed that eliminating outstanding dues represents a new foundation for a stronger and more sustainable petroleum sector, centered on higher production, greater investment, efficient resource management, and energy security.
He concluded by thanking investment partners for their continued confidence in Egypt’s oil sector, crediting their cooperation and the efforts of petroleum sector workers for helping achieve what he described as a historic milestone.
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