Egypt has paid nearly $5 billion owed to foreign oil and gas companies, prime minister Mostafa Madbouly has said.

The government aims to bring the outstanding debt down to $1.2 billion by June 2026, local media reported, quoting the prime minister at his weekly cabinet meeting.

Arrears stood at $6.1 billion on June 30, 2024, he said, adding that monthly invoices are being cleared on time.

Madbouly said the government is committed to meeting its financial obligations to foreign oil companies in line with agreed timelines.

The arrears resulted from a foreign currency shortage faced by the North African nation, which weighed heavily on the economy.

In December Egypt received $3.5 billion from Qatar as part of a deal to develop the $30 billion real estate and tourism project in Alam El-Rum on the Mediterranean coast.

Alam El-Rum is nearly 50km from Ras El Hekma city, which is being developed by Abu Dhabi’s sovereign wealth fund, ADQ, at a cost of $35 billion.

This month Egypt announced a series of oil and gas discoveries amid rising energy import costs.

Madbouly said in July that new projects and the award of more contracts to foreign oil majors would boost Egypt’s gas output and allow it to export again in 2027.

Cairo launched a seismic survey in December to explore for oil and gas in sites that form nearly 10 percent of the country’s area.

The country plans to drill 101 oil and gas wells in 2026 as part of a $5.7 billion investment plan approved by the government in 2025 to drill 480 wells over the next five years.

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