Speaking at a panel hosted by the American Chamber of Commerce (AmCham) in Egypt on energy security amid the current regional turmoil, Minister Badawi said settling dues to international partners has been a top government priority to restore investor confidence and unlock new upstream investments.
He added that the sharp reduction in arrears has already encouraged companies to resume and expand exploration and production activities, particularly in promising areas, as the ministry works to introduce more flexible partnership models that ensure balanced returns for both the state and investors.
Clearing arrears to international oil and gas companies is a key part of the IMF-supported macroeconomic stabilisation programme launched in 2024.
Under the current $8 billion Extended Fund Facility (EFF), the authorities committed to a structured repayment plan that both reduces existing arrears and prevents new ones, to restore investor confidence and protect foreign exchange inflows and energy investment.
Badawi said Egypt is pursuing an integrated strategy to increase natural gas production, noting that declining output in recent years was largely driven by lower investment in exploration and development.
He stressed that boosting production, especially in new and underexplored areas such as the Red Sea, is now a central pillar of the government’s energy policy.
The minister also highlighted the use of floating storage and regasification units (FSRUs) to secure domestic supply, particularly during peak demand periods. He said the approach has provided flexibility in managing supply disruptions and maintaining feedstock for power generation and key industries.
At the same time, Egypt is accelerating renewable energy expansion as part of a broader shift toward a more sustainable and diversified energy mix.
Badawi said planned wind, solar, and nuclear projects are expected to add around 4.6 gigawatts of capacity by 2030, helping reduce reliance on gas in electricity generation and freeing up volumes for export and high-value-added industries.
He said the current phase marks a shift from crisis management to building a more resilient energy sector model based on policy flexibility, faster response, and integration across energy sources, with the dual aim of securing domestic needs and maximizing economic returns from gas resources.
Representatives of international energy companies said recent reforms have improved Egypt’s investment climate, citing more flexible contractual frameworks and better project economics as key drivers behind renewed interest in the market and increased exploration activity.
Short link: