On 8th April 2026, Eng. Karim Badawi, Minister of Petroleum and Mineral Resources, asserted the Egypt's success in addressing one of the most critical challenges facing the Energy Sector, namely, the accumulation of dues owed to investment partners, having a direct impact on investment inflows in addition to the decline of oil and gas production rates.
He explained that H.E. President Abdel Fattah El-Sisi has given this issue top priority, highlighting that the government's commitment to settling monthly dues, along with reducing outstanding arrears, has contributed to lowering total partner receivables from USD 6.1 billion at the end of June 2024 to approximately USD 1.3 billion. The government is targeting full settlement and reaching zero outstanding balances by the end of next June, paving the way for the permanent closure of this file.
These remarks were made during a meeting organized by the American Chamber of Commerce in Cairo, chaired by Dr. Omar Mehanna, with the participation of the Oil and Gas Committee headed by Eng. Amr Abou Eita, Chairman of ExxonMobil Egypt, and attended by senior executives and leaders of major international companies operating in Egypt.
The panel discussion held during the meeting featured Ms. Dalia El-Gabry, VP & Country Chair Shell Egypt; Eng. Wail Shaheen, Regional President of BP in Egypt; Mr. Greg McDaniel, Senior Vice President for International Assets at Apache Corporation and General Manager of its Egypt assets; and Mr. Channa Kurukulasuriya, Country Manager of Chevron Egypt.
The Minister reiterated that this success was achieved through an integrated, coordinated effort led by the Prime Minister, in collaboration with the Ministry of Finance, under two main pillars aimed at advancing the Energy Sector: the first focuses on settling partner dues and stimulating investment, while the second centers on diversifying the energy mix.
He explained that Egypt aims to increase the share of renewable energy to 42% of the energy mix by 2030, alongside a strategic shift toward nuclear power generation. This approach is intended to reduce reliance on natural gas for electricity generation, currently accounts for approximately 60% of domestic consumption.
He affirmed that the approved incentives have helped revitalize investments in upstream activities after a period of slowdown caused by the accumulation of arrears. Efforts have been made to reduce the cost per barrel to enhance economic viability and encourage partner investments. This has been achieved by introducing incentives to improve the feasibility of gas exploration and production (E&P) activities, amending contractual terms, extending and renewing concession agreements to attract new capital, and offering new investment opportunities in proximity to existing producing areas to maximize efficiency and economic returns.
He pointed out that one of the key outcomes of these incentives has been the success of Apache in increasing gas production in Egypt's Western Desert.
Regarding regional cooperation, the Minister emphasized the significance of the partnership with Cyprus to transport Cypriot gas to Egypt and leverage Egypt's infrastructure, either through re-export or by directing it to petrochemical and fertilizer industries.
He further reaffirmed that modern technology represents a fundamental pillar for unlocking new opportunities in E&P, highlighting the implementation of advanced seismic survey projects in the southern Western Desert and the Red Sea, alongside the adoption of horizontal drilling and hydraulic fracturing technologies.
The Minister also highlighted ongoing efforts to develop new contractual and incentive frameworks to attract investments for oil and gas exploration in new frontier areas, particularly in the West Mediterranean, the Red Sea, and the southern Western Desert.
The Minister highlighted the commitment to ensuring the continuous supply of natural gas to the power generation and industrial sectors, pointing out that regasification vessels and LNG import infrastructure secure supply stability during peak demand periods or in the event of regional disruptions, and that the upcoming summer is secure in terms of gas availability.
For her part, Ms. Dalia El-Gabry confirmed that Shell has been committed to operating in Egypt for more than 110 years, with its investments over the past two years focused on supporting gas production in Egypt through the West Delta Deep Marine (WDDM) project. She added that the company has successfully brought two new gas production phases online and is preparing to commence work on a new phase, Phase 12, in the same area.
She further added that the company has, for the first time in Egypt, conducted a 4D seismic survey in the area, revealing promising opportunities. She also emphasized that the drilling rig "Stena IceMAX," operating on behalf of Shell, is the first rig to arrive in Egypt in 2026 and is currently drilling the "West Mina" well, in preparation for bringing it into production before the end of the year.
Minister of Petroleum with AmCham -2
She asserted that Egypt's transformation into a regional energy hub has become a reality, highlighting efforts to maximize the utilization of the Idku LNG complex and the successful export of several shipments, generating significant returns.
He added that a key outcome of these efforts is the new discovery announced by ENI in partnership with BP, with plans to bring it into production as soon as possible. He also highlighted BP's interest in investing in oil exploration activities in the Red Sea, noting that a relevant agreement has been signed.
Mr. Greg McDaniel stated that Apache has been investing in Egypt for more than 30 years, with approximately USD 5 billion invested over the past five years. He emphasized the importance of the agreement signed with the Egyptian Ministry of Petroleum 18 months ago, which enhanced the attractiveness of gas production investments in the Western Desert.
Mr. Channa Kurukulasuriya noted that Chevron has been operating in Egypt since 2020 in the gas exploration sector, currently investing in three areas and negotiating entry into three additional areas. He mentioned that drilling will begin in a new well at the Narges field in the Mediterranean within weeks, in cooperation with ENI.
He also highlighted the importance of cooperation with Egypt to maximize the benefits of the Cypriot Aphrodite field, given Egypt's infrastructure and capabilities as a regional hub for gas transit and trading.
Eng. Wail Shaheen confirmed that BP is intensifying its activities in Egypt, particularly in the Mediterranean, and will begin drilling its first gas well within days as part of its 2026 work program. He referred that the regular settlement of dues and investment incentives have contributed to accelerating the company's projects.
He added that a key outcome of these efforts is the new discovery announced by ENI in partnership with BP, with plans to bring it into production as soon as possible. He also highlighted BP's interest in investing in oil exploration activities in the Red Sea, pointing out that a relevant agreement has been signed.
Mr. Greg McDaniel stated that Apache has been investing in Egypt for more than 30 years, with approximately USD 5 billion invested over the past five years. He asserted the importance of the agreement signed with the Egyptian Ministry of Petroleum 18 months ago, enhancing the attractiveness of gas production investments in the Western Desert.
Mr. Channa Kurukulasuriya highlighted that Chevron has been operating in Egypt since 2020 in the gas exploration sector, currently investing in three areas and negotiating entry into three additional areas. He mentioned that drilling will begin in a new well at the Narges field in the Mediterranean within weeks, in cooperation with ENI.
He also affirmed the significance of cooperation with Egypt to maximize the benefits of the Cypriot Aphrodite field, given Egypt's infrastructure and capabilities as a regional hub for gas transit and trading.
Minister of Petroleum with AmCham -3
