Cairo: Engineer Karim Badawi, Minister of Petroleum and Mineral Resources, confirmed the state's success in addressing one of the most significant challenges facing the energy sector: the accumulation of partners' receivables, which had directly affected investment flows and led to declines in oil and gas production.
According to State Information Service Egypt, this issue was given top priority by His Excellency President Abdel Fattah el-Sisi. The commitment to monthly payments and reductions in arrears successfully cut partners' total receivables from $6.1 billion at the end of June 2024 to about $1.3 billion. The target is to settle them completely and reach zero debt by the end of next June, closing the file for good.
This achievement was discussed during a meeting organized by the American Chamber of Commerce in Cairo, chaired by Dr. Omar Mehanna, and attended by senior leaders and heads of major international companies operating in Egypt, including ExxonMobil, Shell, BP, Apache, and Chevron.
The minister highlighted that the success was achieved through integrated action led by the Prime Minister, coordinated with the Ministry of Finance, focusing on two main pillars: settling partners' dues and incentivizing investment, and diversifying the energy mix. The state aims to raise the share of renewable energy to 42% of the energy mix by 2030 and plans to generate electricity from nuclear power plants to reduce reliance on natural gas, which currently accounts for about 60% of domestic consumption.
The incentives adopted have reactivated exploration and production investments after a slowdown caused by the accumulation of receivables. Efforts have been made to reduce the cost of production and encourage investments by offering incentives, revising agreement terms, and extending contract periods to attract new investments.
One notable result of these incentives was Apache's success in increasing gas production in the Western Desert. The minister also emphasized the importance of regional cooperation, particularly the partnership with Cyprus to transport Cypriot gas to Egypt, utilizing Egypt's infrastructure for re-exporting or directing it to petrochemical industries.
Modern technology was also highlighted as a key component for opening up new exploration and production prospects. Projects for seismic surveys in the southern Western Desert and the Red Sea, along with the application of horizontal drilling and hydraulic fracturing technologies, are underway.
Dalia Gabry of Shell emphasized the company's commitment to Egypt, highlighting investments in the West Delta Deep Marine project and preparations for new phases. She noted the first four-dimensional seismic survey in the area, revealing promising opportunities.
Engineer Wael Shaheen of BP confirmed intensified activities in the Mediterranean, with plans to begin drilling a gas well as part of the 2026 work program, accelerated by regular payment of receivables and investment incentives.