Karim Badawi, Minister of Petroleum and Mineral Resources, said Egypt is moving to restore oil and gas production growth after clearing foreign partners’ arrears, which stood at $6.1 billion in June 2024.

Speaking to newspaper editors and media figures, Badawi said Egypt fully cleared the arrears in June 2026, helping restore investor confidence. Exploration and production activity increased by around 20% during 2026 as partners expanded drilling and production programs.

Badawi said crude oil production has returned to an upward path, while the ministry targets higher natural gas production in FY 2026/27. Egypt recorded 112 new discoveries over the past two years.

Among recent developments, the Denis discovery in the Mediterranean holds estimated gas reserves of around 2 trillion cubic feet. Badawi said an agreement reached during Eni CEO Claudio Descalzi’s visit and meeting with President Abdel Fattah El-Sisi aims to accelerate first production to late 2027. Work has also resumed at the Nargis field, while the Velox-1X well in the Western Mediterranean showed indications of oil.

The ministry has also offered 14 exploration blocks and is conducting three seismic surveys covering more than 300,000 square kilometers. Refinery utilization has risen from 66% to more than 80%, increasing gasoline and diesel production, while the ministry targets $4.5 billion in refinery investments.

Egypt’s arrears settlement followed a steady reduction from $6.1 billion in June 2024 to $1.3 billion by December 2025, $770 million in April 2026 and $440 million in May before reaching zero in June. International oil companies have since committed more than $19 billion in investments over the next three years.

The repayment had been a key production issue months earlier. In March 2026, Badawi said delayed payments had slowed investment and contributed to declining production since FY 2021/22, while renewed confidence was encouraging international partners to expand their five-year investment and production plans.