Egypt has successfully settled $6.1 bn in outstanding arrears owed to foreign oil and gas partners, Petroleum and Mineral Resources Minister Karim Badawi announced during the opening of the Mediterranean Offshore Conference (MOC 2026) in Alexandria, marking a move to restore investor trust and accelerate regional energy production.
Badawi stated at the conference that clearing the debts—which had accumulated over more than two years—establishes a new phase of partnership based on mutual commitment. He detailed that between July 2024 and June 2026, Egypt brought 591 new wells into production and made 113 discoveries to support local output and offset the natural decline of existing fields.
The conference, held under the theme “Egypt is a fundamental pillar for energy security in the Mediterranean,” also highlighted advancing bilateral integration. Cypriot Energy Minister Michael Damianos announced to attendees that his country’s partnership with Egypt is entering a new phase as Nicosia transitions from the exploration of hydrocarbon resources to active development and production.
Damianos explained that gas from Cyprus’s Cronos field is planned to be processed utilising facilities linked to Egypt’s Zohr field and the Damietta liquefied natural gas (LNG) export plant. Additionally, gas from the offshore Aphrodite project is expected to be piped to Egypt to supply the local market. The Cypriot minister emphasised that utilising existing Egyptian infrastructure provides a practical pathway to reduce costs, shorten the timeline for commencing offshore production, and enhance energy security in Europe.
Addressing the forum, Badawi noted that while Egypt possesses critical infrastructure to serve as a regional energy hub—including the Idku and Damietta LNG plants, extensive gas networks, and processing facilities—sustaining this status requires continuous investment, highly efficient operations, and competitive commercial agreements. He pointed to broad opportunities for cooperation with Cyprus, Greece, Italy, and Libya to link the region’s resources to Egyptian infrastructure and consumer markets.
The Egyptian minister highlighted Alexandria’s central role in the sector, noting the governorate hosts four oil refineries representing approximately 45% of Egypt’s total refining capacity, alongside five petrochemical complexes and major gas projects in North Alexandria and the West Delta Deep Marine. Badawi stated that the sector’s future must extend beyond raw extraction to maximising value-added industries such as petrochemicals and fertilisers, while leveraging artificial intelligence and modern technology to lower exploration costs.
The MOC 2026 event was attended by Alexandria Governor Ayman Attia, Greek Ambassador to Egypt Nikolaos Papageorgiou, parliamentary members, and executives from major global energy firms. During his address, Badawi credited President Abdel Fattah al-Sisi and Prime Minister Mostafa Madbouly for institutional support in navigating geopolitical tensions and market volatility to stabilise the energy sector.