Settlement agreement ends Egypt's long-simmering gas dispute with Israel
Egypt and Israel reached a settlement deal ending a long-standing dispute over Egypt’s decision to cancel gas exports to Israel.
Egypt's Ministry of Petroleum has recently ended the long-simmering gas dispute with Israel after signing a settlement agreement worth $500 million to compensate Israel for halting deliveries of gas. Under the agreement, the compensation due to be paid to Israel has decreased from $1.8 billion to $500 million.
On June 16, the Egyptian General Petroleum Corporation (EGPC) and the Egyptian Natural Gas Holding Company (EGAS) signed the agreement with the state-owned Israel Electric Corporation (IEC).
“It was amicably agreed to resolve the dispute as well as settling and reducing the compensation amount,” the Ministry of Petroleum said in a statement received by Al-Monitor.
The IEC is to waive all its rights arising from an arbitration ruling that was issued in its favor in 2015. The settlement amount is to be paid over 8½ years, according to the agreement. Also, the IEC has the right to terminate the settlement agreement in case of not receiving the settlement amount.
