Khaberni - The Egyptian government paid about $220 million of the overdue dues to foreign oil companies at the beginning of November/November, as part of accelerated steps aimed at settling all debts by the first quarter of 2026.
This step is part of a governmental plan that links the payment of arrears with increased production, ensuring the continued flow of investments in the energy sector, and encouraging foreign companies to expand their operations in Egypt, especially after the decline in gas production to 4.6 billion cubic feet per day, a level that does not cover local needs, prompting the country to import between 155 and 160 shipments of liquefied gas during 2025.
In September/September, the government paid about $500 million of the dues, reducing the arrears to about $1.5 billion after the last payment, with an additional $400 million to be paid before the end of 2025, according to a government source for "Al Ain Al Ikhabaria."
Cairo aims to increase natural gas production to 6.6 billion cubic feet per day by 2030, an increase estimated at about 58% compared to the current level of 4.2 billion cubic feet, according to the Minister of Petroleum and Mineral Resources, Karim Badawi. The plan includes drilling 14 exploratory wells in the Mediterranean during 2026 to assess reserves estimated at about 12 trillion cubic feet.
The government source clarified that the total planned payments to be injected during the last quarter of 2025 amount to about $1.4 billion, to be completed by the first quarter of 2026, enhancing the confidence of foreign companies in the Egyptian market, especially in light of the new discoveries that are relied upon to reduce the import bill.
Medhat Youssef, former vice president of the Petroleum Authority, said that the government's continuous payment of foreign companies' dues enhances the confidence of international partners in the Egyptian economy, noting that the accumulation of dues during the past two years was linked to the decline in foreign currency reserves and the state's inability to pay these obligations during that period.
In March/March, President Abdel Fattah El-Sisi emphasized the importance of commitment to paying the dues of petroleum and gas companies, after they exceeded $6 billion at the end of 2023, while the foreign currency reserves remained close to the level of $34 billion recorded at the end of 2022. In July / last July, the government announced the payment of 25% of these dues in conjunction with the rise of the reserve to a record level exceeding 46 billion dollars.
Youssef explained that linking the payment of dues with enhancing production represents a motivational mechanism for foreign companies to inject more investments in development activities, pointing out that amending the terms of the petroleum agreements requires the approval of the House of Representatives according to the procedures regulating this sector.
He added that the government works according to a new accounting mechanism, through which the value of the increase in production for the foreign partner is paid immediately, as part of the arrears due on the Petroleum Authority.
In a parallel context, on August 28, the government allowed the export of part of the new gas production that exceeds the agreed quotas, with the aim of increasing revenues and directing them to pay off accumulated debts.
The list of companies that have been agreed with to settle their dues before early 2026 includes major international companies, among them Eni from Italy, Apache from the United States, and BP from Britain, which collectively represent about 60% of the total dues of foreign companies in Egypt.
