Minister of Petroleum and Mineral Resources Karim Badawi has announced the successful resolution of dues owed to investment partners.
This issue has directly affected investment flows and contributed to declining oil and gas production rates. This announcement was made during a meeting organised by the American Chamber of Commerce in Cairo, chaired by Omar Mahna.
Badawi outlined the government’s target to increase the contribution of renewable energy to 42% of the energy mix by 2030, alongside plans to generate electricity from nuclear power plants.
Minister Badawi stressed that President Abdel Fattah El Sisi has prioritised this matter, highlighting that a commitment to monthly payments and efforts to reduce overdue amounts have led to a significant decrease in total dues owed to partners, from $6.1 billion at the end of June 2024 to approximately $1.3 billion. The government aims to completely settle these dues by the end of June, striving for zero outstanding debts.
The minister attributed this success to collaborative efforts spearheaded by Prime Minister Moustafa Madbouli and coordinated with the Ministry of Finance. The strategy focuses on two key pillars to enhance the energy sector: settling partner dues and stimulating investment while diversifying the energy mix.
This approach aims to reduce reliance on natural gas, which currently constitutes about 60% of domestic consumption.
Additionally, Minister Badawi noted that the incentives introduced have revitalised investments in exploration and production, following a period of slowdown due to accumulated dues. Efforts are underway to lower production costs to enhance economic viability and attract partner investments through incentives designed to make gas exploration and production operations more feasible. He underscored that modern technology is a crucial pillar for advancing exploration and production. The minister mentioned the implementation of seismic surveys utilising advanced techniques in the southern Western Desert and the Red Sea, as well as the application of horizontal drilling and hydraulic fracturing technologies.
Minister Badawi reaffirmed the government’s commitment to ensuring a stable supply of gas for the electricity and industrial sectors. He assured stakeholders that regasification ships and the infrastructure for importing liquefied natural gas will stabilise supplies during peak periods or in the event of any regional disruptions, ensuring a secure summer ahead.
