Ahmed Kamel – Egypt Daily News
Egypt has made a fresh payment of $500 million to settle part of its outstanding debts to international oil companies operating in the country, according to a senior government official. The payment, made in September, brings the total backlog down to approximately $1.72 billion, a figure the government is determined to eliminate entirely by the first quarter of 2026.
Of the remaining dues, $620 million are scheduled for payment before the end of this year. The official, who requested anonymity, confirmed that Egypt is maintaining its commitment to honor all outstanding financial obligations to energy partners in order to restore confidence and encourage continued investment in its oil and gas sector.
The move comes amid mounting pressure on Egypt’s energy infrastructure, as domestic gas production has declined to around 4 billion cubic feet per day, far below the peak demand of approximately 7 billion cubic feet during the summer months. The shortfall has forced Egypt to resume liquefied natural gas (LNG) imports for the first time in five years, reversing its former status as a self-sufficient gas exporter.
In recent statements, Prime Minister Mostafa Madbouly outlined Egypt’s broader energy strategy, expressing optimism that the country could resume gas exports by 2027. The plan hinges on raising domestic production to an estimated 6.6 billion cubic feet per day. up from the current 4.1 billion through a combination of intensified exploration, drilling new wells, and boosting output from existing assets.
Central to this strategy is the Zohr gas field, Egypt’s largest offshore discovery, where the government is pursuing new drilling campaigns and accelerating development efforts to unlock more extractable reserves. Additionally, Egypt is preparing to launch new exploration bid rounds to attract further foreign investment and expand its upstream portfolio.
Clearing overdue payments is a crucial part of this broader effort. Delays in settling financial obligations have in the past dampened investor confidence and slowed development in Egypt’s energy sector. By reducing arrears and setting a clear timeline for repayment, the government hopes to demonstrate fiscal responsibility and renew its reputation as a reliable partner for international oil and gas companies.
With global energy markets in flux and regional supply dynamics shifting, Egypt’s ability to stabilize its domestic energy balance while reasserting its role as an LNG exporter will be a defining economic challenge over the next two years. Paying down energy sector debts is not only a step toward that goal but also a signal of Egypt’s commitment to long-term energy security and investment continuity.
