Egypt to appeal $1.76 billion fine to Israel, freezes gas import talks
Egypt is to appeal a ruling by the International Chamber of Commerce to compensate Israel Electric Corporation (IEC) and Eastern Mediterranean Gas Company (EMG) with US$1.7 billion and US$288 million, respectively, in addition to interest and legal expenses.
The state-owned Egyptian Petroleum Company (EGPC) and Gas Company (EGAS) said in a statement that they would appeal the ruling in the courts of Switzerland through its legal consultant Shearman & Sterling LLP.
The Egyptian government will suspend negotiations between companies and freeze the issuing of permits to companies importing gas from Israel, a joint statement by EGPC and EGAS said
Additionally, Egyptian Prime Minister Sherif Ismail asserted to reporters Sunday that his country would appeal the IEC’s ruling.
IEC and EMG resorted to international arbitration after attacks on the gas pipeline in North Sinai stopped the flow of gas they had received according to a 20-year agreement with Egypt.
In April 2012, Egypt stopped its gas sales to Israel, in a 20-year deal signed in 2005, following a year of sporadic attacks on the gas pipeline.
The Israel Electric Corp. demanded a compensation of US$3.8 billion and the East Mediterranean Gas company which oversaw the deal demanded US$1.5 billion, Ahram Online reported.
On November 25th, Egyptian privately-owned Dolphinus Holding signed a preliminary agreement with Delek Drilling and Avner Oil and Gas to import gas from Israel’s Leviathian field when production begins in 2019.
