Egypt Repays $6.1 Billion in Oil Company Debt, Targets Regional Gas Integration in Mediterranean

Petroleum and Mineral Resources Minister Karim Badawi announced that Egypt has completed repayment of $6.1 billion in arrears owed to foreign partners in the oil and gas sector, noting that these amounts accumulated over more than two years.

The announcement came during the opening of the Mediterranean Offshore Conference (MOC 2026) held in Alexandria under the theme "Egypt: A Cornerstone of Mediterranean Energy Security." Badawi said that settling the debt establishes a new partnership phase based on mutual commitment, praising the institutional support provided by President Abdel Fattah El-Sisi and Prime Minister Mostafa Madbouli to stabilize the sector in the face of geopolitical tensions and market fluctuations.

The minister revealed that Egypt has drilled 591 new wells and made 113 discoveries between July 2023 and June 2025 to support domestic production and compensate for natural decline in existing fields.

Badawi affirmed that Egypt possesses vital infrastructure that positions it to become a regional energy hub, including liquefied natural gas plants in Idku and Damietta, extended gas networks, and processing facilities. However, maintaining this position requires continuous investment, highly efficient operations, and competitive commercial agreements. He pointed to broad cooperation opportunities with Cyprus, Greece, Italy, and Libya to link the region's resources to Egyptian infrastructure and consumer markets.

Cyprus's Energy Minister Michael Damianos announced at the conference that his country's partnership with Egypt is entering a new phase as Nicosia transitions from exploration to actual development and production. He explained that the plan calls for processing gas from Cyprus's Kronos field through facilities connected to Egypt's Zohr field and the Damietta liquefied natural gas plant, while gas from the Aphrodite offshore project will be pumped to Egypt to supply the domestic market.

Damianos noted that utilizing Egypt's existing infrastructure provides a practical pathway to reduce costs and shorten the timeline for launching offshore production and enhancing European energy security.

Badawi mentioned that Alexandria hosts four oil refineries representing approximately 45 percent of Egypt's total refining capacity, in addition to five petrochemical complexes and major gas projects in northern Alexandria and the Western Desert. He emphasized that the sector's future goes beyond crude extraction toward high-value-added industries such as petrochemicals and fertilizers, leveraging artificial intelligence to reduce exploration costs.

The conference was attended by Alexandria Governor Ayman Atta, Greek Ambassador to Egypt Nikolaos Papageorgiou, parliamentarians, and chief executives from major global energy partners.