Egypt to clear $1.3 billion oil debt by June

Petroleum Minister Karim Badawi said outstanding arrears have been reduced from around $6.1 billion in June 2024 to approximately $1.3 billion today, with full settlement now on track ahead of a June 30 deadline.

He added that the ministry has also committed to maintaining regular monthly invoice payments alongside the clearance of legacy debt, according to a statement released on Saturday.

Badawi said the country seeks to rebuild investor confidence and reverse a recent decline in domestic energy output.

The debt accumulated during a period of economic strain beginning in the 2021/22 fiscal year, amid the pandemic and regional escalation, which caused investment to slow and domestic production to fall.

Badawi indicated that the decline has now been contained and that exploration and development activity is picking up again.

As part of a broader five-year strategy, Egypt plans to drill around 101 exploratory oil and gas wells in 2026, with more than 480 wells targeted across various petroleum regions over the coming years.