Egypt plans to pay $1.3 billion in outstanding debts to international oil companies by June, moving up its previous repayment schedule, the country’s petroleum ministry announced on Saturday.

The North African nation had accumulated around $6.1 billion in arrears to foreign oil companies by mid-2024, largely due to a persistent shortage of foreign currency that delayed payments. This delay not only slowed investment but also affected domestic gas output. While the currency situation has improved, some oil firms report that arrears are beginning to pile up again.

Earlier this year, the government had projected that about $1.2 billion in arrears would remain unpaid by June. Clearing these debts is expected to encourage foreign companies to resume drilling operations, potentially boosting Egypt’s declining local production, which has dropped since peaking in 2021.

Increasing domestic production would help reduce the country’s reliance on imported energy, providing a significant relief to Egypt’s energy sector.