Egyptian Oil Minister Tarek El Molla witnessed Monday signing a settlement agreement between Kuwait’s Bawabet Al Kuwait Holding Company and four Egyptian firms.
The agreement aimed at settling the disputes arose between the Kuwaiti firm, and Egyptian Natural Gas Holding Company (EGAS), Egyptian Natural Gas Company (GASCO), Petroleum Trading Services -Petrotrade, in addition to Alexandria Fertilizers Company.
Hereby the settlement agreement, the Kuwaiti firm is set to waive the arbitration suit at the Washington D.C.-based International Centre for Settlement of Investment Disputes against the Egyptian side.
In 2011, Bawabet Al Kuwait initiated a US$1.2 billion compensation claim against the Egyptian government, while in July 2016, Egypt allegedly agreed to settle the $1.2 billion dispute with the Kuwaiti firm.
The dispute is rooted in the government unilaterally backing out of a 15-year contract to supply the company with gas at a price of USD 3/mbtu.
The settlement terms reported that GASCO will guarantee Alexandria Fertilizers Company, a subsidiary of Bawabah Al Kuwait, “continuous and uninterrupted supplies” of 15.2 bcf of gas per year but not the price.
Minister El-Molla noted that the settlement agreement comes among Egypt’s current policies to encourage investments and end investment disputes.
He further noted that the agreement reflects the deep ties and continuous cooperation between Egypt and Kuwait.