Egypt makes payment of $1B towards debts to foreign oil companies

CAIRO - 10 November 2024: The Egyptian government recently made a significant payment of $1 billion towards its outstanding debts to foreign oil companies, which initially amounted to $2 billion, as confirmed by an official who spoke with Asharq Bloomberg.

As of last March, Egypt’s total debt to foreign oil companies was $4.5 billion.

Since then, $1.3 billion was settled in June, $1.2 billion in September, and $1 billion last Monday, leaving only $1 billion in unpaid arrears.

This development comes as Egypt resumes LNG imports, ending a five-year period as an exporter, due to the current gap between domestic natural gas production and demand.

While Egypt’s daily natural gas requirement is 6.2 billion cubic feet, production has declined to around 4.6 billion cubic feet per day.

To address this challenge, the government has set a target to increase production to approximately 5 billion cubic feet per day by the end of the year.

These efforts coincide with Egypt’s broader strategy to clear its debts and collaborate with foreign partners on development and exploration plans. By adhering to a structured repayment schedule and implementing regular payments for partners’ shares, the government aims to prevent the recurrence of debt accumulation.