Talks Between Egypt’s Transport Ministry, Mashreq Still Ongoing; Citadel Says

Citadel Capital (CCAP.CA), Egypt’s biggest publicly traded private-equity firm, has asserted the negotiations are ongoing between its subsidiary Mashreq Petroleum – which owns a concession for bunkering station in East Port Said port – and Egypt’s Ministry of Transport. The negotiations aim to review and amend some of contract terms of establishing bunkering station project.

In a release sent to the Egyptian Exchange (EGX) on Tuesday, Citadel added that it would disclose the outcome of these talks in case of its success.

Mashreq was acquired by TAQA Arabia, Citadel Capital’s full-service regional energy distribution platform, in 2007. Its asset was a lease for a 210,000 square meter plot of land located in East Port Said near the strategically important entrance to the Suez Canal. Since that time the company has been working to develop a one-of-a-kind Egyptian bunkering facility. In the first quarter of 2009, Mashreq was spun off from TAQA Arabia, becoming a distinct platform company.

To date, Egypt has not been getting maximum benefit from its strategic location on the Suez Canal. With Mashreq, Egypt will be able to capitalize on the heavy traffic that transits the Canal each year. The land that Mashreq leases is also adjacent to Maersk’s Suez Canal container terminal, giving it even greater access to vessels as they load and unload cargo.

As ships are waiting for their convoys to pass through the Canal, Mashreq will be able to provide them with fuel as well as other services.