Israel, Egypt near gas compromise - report

Sinai gas pipeline
Sinai gas pipeline

Israel is willing to halve the $1.73 billion in damages from Egypt awarded by an arbitrator for the halt in supply of gas to Israel reports "Bloomberg."

The 'Bloomberg" news agency reports that the Israeli government is willing to halve the $1.73 billion in damages from Egypt awarded Israel by an international arbitrator for the halt in Egypt's supply of natural gas to Israel. Egypt suspended negotiations for importing Israel gas, pending a resolution of the dispute.

Leviathan gas reservoir owners Noble Energy and Delek Group Ltd. (TASE: DLEKG) need gas export contracts to secure financing for development of the reservoir.

Recent reports of warmer relations between Israel and Egypt, despite the significant internal problems involved, have given rise to hopes in economic circles that a substantial reduction in the award would convince the Egyptian government to pay at least some of it. If any payment is made, it will be given as compensation to businessman Yossi Maiman, the franchise holder who operated the gas pipeline from Egypt to Israel.

Published by Globes [online], Israel business news - www.globes-online.com - on May 18, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

Sinai gas pipeline
Sinai gas pipeline
Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018