Egypt has announced plans to clear $1.3 billion in outstanding payments owed to foreign oil companies by June, moving faster than its earlier repayment schedule.
The country had built up about $6.1 billion in arrears as of mid-2024, largely due to a prolonged shortage of foreign exchange that delayed payments and slowed investment in the energy sector.
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Officials say easing currency pressures have improved the situation, although some firms report that new debts are beginning to accumulate again.
Authorities believe settling the backlog will encourage international oil and gas firms to resume drilling, helping to boost domestic production, which has declined since peaking in 2021, and reduce reliance on energy imports.
Rising global oil prices linked to tensions in the Middle East have further increased Egypt’s import costs, putting additional strain on the economy.
To manage energy demand, the government is considering measures such as remote work for public employees and earlier closing times for businesses.
Egypt had earlier committed $1.5 billion in 2024 to begin repaying the debt, with officials maintaining that the remaining balance will be cleared through a structured plan as the economy gradually stabilises.
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