Egypt has cleared approximately $5 billion of the arrears due to its foreign partners in the oil sector, significantly reducing the sector’s debt as the state moves to accelerate upstream exploration, Prime Minister Mustafa Madbouly said during the Cabinet’s weekly meeting.

 Egypt’s total arrears for International Oil Companies have dropped from a mid-2024 peak of $6.1 billion and are expected to reach$1.2 billion by the end of June 2026, which is the normal rate, according to Madbouly.

He stressed the Egyptian state’s commitment to paying monthly dues of foreign partners according to the specified timetable, adding that this policy ensures that current invoices are met regularly to prevent debt accumulation and provide international partners with the financial stability needed to sustain complex drilling operations.

“There are clear directives to intensify exploration efforts and provide enhanced incentives for investors in the oil, gas, and mining sectors,” Madbouly stated. He emphasized that these facilities are designed to attract fresh capital, increase domestic production, and meet the growing consumption needs of the Egyptian market.

President Abdel Fattah El-Sisi has recently instructed the Ministry of Petroleum to intensify onshore and offshore exploration efforts, leveraging successful drilling experiences to expand the nation’s production profile.