Egypt to settle $1.3B IOC arrears by end-June

Updated 3/24/2026 7:49:00 AM

Arab Finance: Egypt is set to settle $1.3 billion in arrears to international oil companies (IOCs) by the end of June 2026, Minister of Petroleum and Mineral Resources Karim Badawi announced.

This marks a reduction in arrears owed to foreign oil and gas partners from $6.1 billion as of June 30th, 2024, as the ministry is working to fully clear arrears while maintaining regular monthly payments, Badawi said.

The move aligns with directives from President Abdel Fattah El-Sisi to accelerate settlements of all IOC dues and encourage investment to increase domestic production and reduce the import bill.

Since the second half (H2) of 2024, the ministry has placed major attention on implementing investment incentive measures that have contributed to reducing outstanding dues while ensuring regular monthly payments.

To address this issue, the petroleum ministry collaborated with several ministries and state institutions, including the Central Bank of Egypt (CBE) and the Ministry of Finance.

Badawi noted that these measures helped in containing the decline in production resulting from the slowdown in investments since fiscal year (FY) 2021/2022 amid economic challenges.

He elaborated that these steps positively impacted the revitalization of investments in exploration and field development.

Moreover, the minister pointed out that the sector continues to expand local production and reduce the import bill by conducting an ambitious plan to drill approximately 101 exploratory oil and gas wells during 2026. This falls within a five-year strategy targeting the drilling of more than 480 wells in various regions.

Additionally, the ministry seeks to develop existing fields, which are being implemented at a rapid and intensive pace.

The minister indicated that restoring confidence with partners has encouraged international companies operating in Egypt to expand their businesses over the next five years.

Italy’s energy giant Eni announced an investment plan of about $8 billion, while the British oil and gas company bp rolled out investment plans valued at $5 billion. Moreover, UAE-based Arcius Energy unveiled plans amounting to $2 billion.

Shell also boosted its investments in gas exploration and production in the Mediterranean, whereas Apache scaled operations in the Western Desert and increased its exploration areas in Egypt last year, with total investments exceeding $4 billion.