Egyptian weekly "Al Ahram" reported on Friday that an organization called "No to the Gas Setback" plans to sue top Egyptian government officials who approved and signed last week's natural gas supply deal between Egypt's East Mediterranean Gas Company (EMG) and Israel Corporation (TASE: ILCO) subsidiaries Israel Chemicals Ltd. (TASE: ICL), Oil Refineries Ltd. (TASE:ORL), and OPC Rotem Ltd.
Last Monday, Israel Corp. announced the 20-year contracts, worth an estimated $5 billion. The announcement created a storm in Israel; two days later, Petroleum Supervisor Dr. Yaakov Mimran and Ministry of National Infrastructures director general Shaul Tzemach, suspended their participation on the Sheshinski committee until a solution to the development of the Tamar natural gas field was found. The committee has six members.
In Egypt, Ibrahim Zahran, a top activist in "No to the Gas Setback" campaign told "Al Ahram" that this was the fourth time that Egypt had agreed to sell gas to Israel. "The first was in 2004. The other agreements were concluded after 2008. Secrecy and lack of transparency about the terms of the deals are common factors of all these deals," he said.
Zahran said that the latest gas purchase agreements contradicts the ruling passed earlier this year by the Higher Administrative Court that set three preconditions for the export of gas: that the local market's needs are take precedent; that gas be sold at international market prices, and that deals be limited to one year, after which they can be reviewed. "The latest agreements meet none of these conditions," he said.
"We are seeking to sue senior officials at the Ministry of Petroleum. Unfortunately, the prime minister and the minister of petroleum can't be sued because of their political immunity," says Zahran.
Published by Globes [online], Israel business news - www.globes-online.com - on December 19, 2010
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