Egypt has succeeded in addressing the challenge of accumulated dues owed to investment partners in the oil and gas sector, a problem that had negatively impacted investment flows and led to a decline in oil and gas production rates, Minister of Petroleum and Mineral Resources, Karim Badawi, told attendees of an American Chamber of Commerce (AmCham) event.
The country reduced investment partner arrears from $6.1 billion in June 2024 to approximately $1.3 billion, with a target to fully settle all outstanding debts by June 2026, he said.
Badawi emphasized that the commitment to regular monthly payments has already bolstered investment flows and revitalized oil and natural gas production. This success was achieved through an integrated strategy led by the Prime Minister in coordination with the Ministry of Finance, focusing on stimulating investment and diversifying the national energy mix,said Badawi.
The MoPMR aims to raise renewable energy’s contribution to 42% of the total energy mix by 2030, alongside incorporating nuclear power. This strategy is designed to rationalize the consumption of natural gas in electricity generation, which currently accounts for 60% of gas consumption.
Badawi also added that the exploration and production activities have been reactivated thanks to the incentives the government is offering foreign partners, like revising the terms of agreements, extending their duration and renewing them to attract new investments, as well as presenting new investment opportunities near existing production areas to maximize returns.
Senior executives in international oil companies attending the event affirmed this by talking about their new investments in Egypt.
Shell’s Country Chair, Dalia Elgabry, reported that the company is preparing to launch Phase 12 of the West Delta Deep Marine (WDDM) project. She noted that the ‘Stena IceMax’ rig, the first to arrive in Egypt in 2026, is currently drilling the ‘West Mena’ well, with production expected to start before year-end.
Wail Shaheen, Vice President, bp, stated that the company will begin drilling its first natural gas well within days as part of its 2026 program. He credited the regular payment of dues and investment incentives for accelerating the company’s projects, including a discovery with Eni.
Moreover, Greg McDaniel, SVP of International Assets, Apache, highlighted that the company has invested $5 billion in Egypt over the past five years, noting that a key agreement signed 18 months ago has significantly enhanced the attractiveness of natural gas production in the Western Desert.
Meanwhile, Chevron Egypt Country Manager, Channa Kurukulasuriya, announced that drilling of a new well in the Nargis field will commence within weeks in cooperation with Eni. He also emphasized the importance of transporting Cypriot natural gas from the Aphrodite field to Egypt’s infrastructure.
Badawi concluded by affirming that the coming summer demand is secured with oil and gas shipments and the Floating Storage and Regasification Units(FSRU)s.
