Egypt has announced it will pay $1.3 billion in overdue funds to international oil companies by June 30, 2026, the Petroleum Ministry said. The move aims to stabilize the country’s energy sector and encourage foreign investment.
The arrears, accumulated due to foreign currency shortages and economic challenges, had slowed oil and gas production and delayed new exploration projects. Authorities say paying off these debts will reassure foreign partners and could help reverse declines in domestic output.
Cairo has already reduced some of its outstanding arrears in recent years and plans to maintain regular monthly payments while clearing legacy debts. Officials stress that this settlement is key to securing long-term energy investment and reducing reliance on imported fuel.
Analysts note that clearing the backlog could make Egypt a more attractive destination for oil and gas firms, while supporting the country’s broader economic and energy goals.
