Outstanding arrears to International Oil Companies (IOCs) currently stand at $770 million, down from $6.1 billion in June 2024, and are scheduled to be fully repaid by June, according to Karim Badawi, Minister of Petroleum and Mineral Resources. Speaking at the Mediterranean and Red Sea Resource Exploration Summit in the New Administrative Capital, he stressed that the Ministry of Petroleum and Mineral Resources (MoPMR) is prioritizing the settlement of IOCs dues to boost investor confidence and accelerate upstream activities.
Badawi emphasised that achieving zero arrears is a cornerstone of the ministry’s strategy to incentivize drilling and exploration, which also includes the recently introduced flexible commercial models.
The Minister highlighted that modern seismic surveys have yielded promising prospects in the Gulf of Suez, the Western Desert, and the Western Mediterranean. Furthermore, he identified the Red Sea as a vital new exploration destination, urging partners to intensify operations to maximize production. The MoPMR strategy currently focuses on six pillars, including the acceleration of exploration and the optimization of refining and petrochemical infrastructure.
While the state aims to increase the contribution of renewables to 42% by 2030, Badawi maintained that oil and natural gas will remain the primary pillars of the global energy mix for decades. The energy mix will allow Egypt to rationalize its natural gas consumption by prioritizing high-value industries and exports.
Badawi concluded by affirming that the human element remains the sector’s most valuable asset, with a strict commitment to maintaining “safe man-hours without injuries” through the application of the highest safety standards. Historically, the MoPMR has leveraged scientific cooperation with entities like the SEG to maintain Egypt’s position as a central hub on the global energy map.
The summit, convened by the Society of Exploration Geophysicists (SEG) from April 28–30, gathered 150 experts from 40 international companies (IOCs). SEG is a global professional organization dedicated to advancing the science of applied geophysics and fostering the expert development of geoscientists.
