Gov’t to clear USD 3.2 bn worth of arrears to foreign oil and gas companies operating in the country during the current fiscal year over three installments, an unnamed government official told Asharq Business.

The timeline: The first installment — of around USD 1.2 bn — is scheduled for October. It will be followed by two USD 1 bn payments scheduled for the months that follow.

Remember: The government cleared USD 1.3 bn worth of debt owed to foreign oil and gas companies at the end of June, marking the second large chunk of arrears paid to oil companies since the beginning of the year. The government made a USD 1.5 bn payment in March after the float of the EGP.

The key to unlocking fresh oil investments: The pileup of unpaid dues likely pushed away foreign energy players from launching new projects or deploying fresh investments in Egypt. Case in point, Italian energy giant Eni unveiled plans to drill two new wells in the Zohr field in 2H 2025 shortly after June’s USD 1.3 bn payment was announced.

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