The state has managed to drop its owed dues by around another $275 million since the end of April 2026, on the back of regular monthly payments of dues, the reduction of accumulated debt, and a package of incentive measures that led to companies expanding exploration and production activities within the oil and gas sector.
During a seminar for the Egyptian-British Business Association (BEBA), Badawi affirmed that arrears are still on track to be settled in full by the end of June, the end of the current FY 2025/2026.
BEBA is a non-governmental organization that offers and coordinates business and services for the British and Egyptian business communities.
This comes as Egypt tries to increase its renewable energy contribution to the energy mix to 48 percent by the end of 2028 as it aims to achieve self-sufficiency in oil and gas by 2030.
This is to unlock new investments and apply a strategy to increase natural gas production and lower reliance on imports, as well as reduce the use of natural gas for electricity generation and use it in the petrochemical and fertilizer industries instead.
Settling arrears has been one of the government’s priorities alongside restoring investor confidence during the ongoing regional conflicts that caused pressure on energy prices.
The conflict pushed for more measures to be implemented and rationalize government spending to reduce fuel usage, to secure the electricity supply, and ensure sustained availability.
To add, Egypt has decided not to raise energy prices for the remainder of the year, following a series of hikes driven by global market volatility, as well as moving away from debt-fueled financing.
It’s worth noting that these moves align with objectives for Egypt’s $8 billion Extended Fund Facility (EFF) programme with the International Monetary Fund (IMF).
An IMF delegation is currently in Cairo to conduct the seventh review of the EFF and the second review under the Resilience and Sustainability Facility (RSF), which, upon completion on 15 June, will unlock around $1.6 billion in new financing for Egypt.
Meanwhile, Egypt’s mining sector is undergoing a new phase based on updated structural and legislative reforms, as it’s considered a promising sector for growth, the minister said.
The updated reforms were still at the early stages of implementation earlier this year, and aim to regulate the sector, expedite exploration risk-reducing measures, transition from discovery to production, and encourage financial institutions to provide financing for investors.
In other related news, Harbour Energy’s Managing Director for the Middle East and North Africa, Sameh Sabry, announced during the seminar that the firm will begin gas production from a new well in the Fayoum offshore field in 2026, in collaboration with British Petroleum (BP).
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