The government paid out USD 1 bn in arrears owed to international oil companies during the first week of July, Asharq Business reports, citing an unnamed government source with knowledge of the matter. This month’s disbursements mean that Egypt has paid out a total of USD 8.5 bn in arrears to IOCs in the last 12 months, after a similar payment in January and several other payments in 2024.

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We still have some ways to go — but the end is in sight: Egypt’s total outstanding arrears now stand at around USD 2.5 bn, which the government plans to clear out in September, according to the government source.

REMEMBER- Following a costly few months of energy imports to bridge the gap between local production and demand, the Oil Ministry has been working to start increasing local energy production in 2025. We reported in February that the government is planning to clear all arrears owed to IOCs by the end of 2025, beginning with a USD 1 bn disbursement, following earlier payouts and new incentives aimed at boosting investment and domestic output.

The big picture: The move comes as Egypt tries to position itself as a reliable partner in the Eastern Med energy market amid a mounting supply-demand imbalance. Current production stands at 4 bcf/d — nearly 40% below the 7 bcf/d needed to meet the country’s surging summer demand. The supply crunch has pushed LNG exports for most of 2025 to prioritize domestic needs.

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