Egypt will repay $1.3 billion in arrears to international oil companies by June, the petroleum ministry announced Saturday.
The country had amassed roughly $6.1 billion in unpaid bills to foreign energy firms by mid-2024 due to prolonged foreign currency shortages.
These delays weighed heavily on investment and gas production, slowing drilling activity as companies grappled with inconsistent payments.
Previously, the government expected around $1.2 billion in arrears to remain by June under its January timetable, indicating a faster repayment plan.
Officials hope settling debts will incentivise foreign companies to resume drilling, boosting local production that has been declining since 2021.
Increased domestic output could help Egypt curb its energy imports, which have surged amid regional tensions and global oil market volatility.
The U.S.-Israeli war with Iran has forced Egypt to consider remote work and earlier shop closures to reduce energy consumption.
According to the Institute of International Finance, higher oil costs may raise expenditures by 0.2% to 0.55% of GDP during fragile economic recovery.
The accelerated repayment plan signals a strategic push to stabilise Egypt’s energy sector while easing pressures on foreign investors and domestic supply.
