Photo courtesy of Egypt's Ministry of Petroleum and Mineral Resources
The last remaining outstanding amount of $440 million from May was paid in full, following the most recent change in schedule to 10 June. This is ahead of the previously scheduled time of 30 June or the end of the current FY 2025/26.
Badawi described the move as a "strategic achievement" that marks a turning point for Egypt's petroleum sector and is expected to boost investor confidence, attract new investments, and support efforts to increase oil and gas production.
"The elimination of partners' arrears opens a new phase based on trust, investment, growth, and increased production," the minister stated.
He attributed the achievement to the support and follow-up of President Abdel-Fattah El-Sisi, as well as coordination across government institutions under Prime Minister Mostafa Madbouly.
According to the minister, settling the outstanding payments represents more than a financial adjustment, describing it as a fundamental solution to one of the sector's most pressing challenges in recent years.
Accumulated arrears had affected investment levels, drilling programmes, exploration activities, and field development projects, which in turn impacted domestic oil and gas production, he said.
Badawi noted that clearing the dues has significantly improved the investment climate in Egypt's petroleum sector by removing a major obstacle to new capital inflows and paving the way for increased exploration, field development, and production projects.
He said the development sends a clear message to international investors that Egypt honours its commitments and remains committed to providing a stable and attractive business environment.
The minister highlighted Egypt's strategic location, advanced energy infrastructure, integrated production and export facilities, and experienced workforce as key advantages that strengthen its position as a regional energy investment destination.
He added that investment momentum has already begun to recover, with international partners resuming drilling, exploration, and development programmes at an accelerated pace, contributing to higher investment levels across concession areas.
Badawi also pointed to the technical and financial challenges associated with developing offshore fields in the Mediterranean, particularly in deep-water areas that require advanced technologies, extensive drilling operations, and significant investments in gas transportation and processing infrastructure.
He stressed that the ministry's strategy focuses on accelerating the development of discoveries, bringing them into production as quickly as possible, maximizing the value of Egypt's natural resources, and adding new production capacities to meet domestic demand and support economic growth.
"The complete elimination of arrears marks the starting point for a stronger and more sustainable phase for Egypt's petroleum sector," Badawi said, adding that the next stage will focus on increasing production, expanding investments, improving resource utilization, and strengthening energy security.
The minister also thanked Egypt's investment partners for their continued confidence in the country's petroleum sector and praised sector employees for their efforts in helping achieve what he described as a historic milestone.
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