The Egyptian government has made an early payment of $1.2 billion toward its $3.2 billion outstanding debt to foreign oil companies, completing the payment last week instead of the scheduled October date, according to sources cited by,Asharq Bloomberg.

This move comes as Egypt aims to settle its arrears to foreign energy firms in order to ramp up domestic natural gas production, which has declined to 4.6 billion cubic feet per day (BCF/D). This output falls short of the country’s daily demand, compelling Egypt to re-enter the ranks of liquefied natural gas (LNG) importers after five years as a net exporter.

Egypt currently requires approximately 6.2 BCF/D to meet its energy needs, while daily production remains at 4.6 BCF/D. According to Bloomberg, the government is targeting an increase in production to around 5 BCF/D by the end of 2024.

Earlier reports indicate that the government intends to settle the full $3.2 billion debt in three installments during the current fiscal year. The first installment, originally planned for October, amounted to $1.2 billion.

In June 2024, Egypt made a $1.3 billion payment to foreign oil and gas companies operating within its borders, marking an ongoing effort to reduce financial liabilities.

As of March, the International Monetary Fund (IMF) reported that Egypt’s debts to foreign oil and gas exploration and extraction companies—owed by the Egyptian General Petroleum Corporation (EGPC)—had reached approximately $4.5