CAIRO: The Egyptian General Petroleum Corporation (EGPC) and Egyptian Natural Gas Holding Company (EGAS) announced that they will appeal against the Geneva-based International Chamber of Commerce’s ruling ordering Cairo to pay $1.76 billion in compensation to Israel over halting the export of natural gas.
The Egyptian government notified Sunday the EGPC and EGAS to freeze any negotiations between the Egyptian and Israeli companies over exporting gas from Israeli fields pending issuance clarification on the international arbitrary decision, the two companies announced in a joint statement Sunday.
The Israel Electric Corp and East Mediterranean Gas Company (EMG) filed a complaint against the two Egyptian companies over “suffering damages” due to the repeated explosions of North Sinai’s Arish gas pipeline that feeds Jordan and Israel since the January 25, 2011 Revolution.
The Israeli Electric Crop has asked for $1.5 billion in compensation, but it was awarded $288 million; meanwhile, the EMG was awarded $1.7 billion although it has asked for $3.8 billion, the statement noted.
The Israeli company and EMA have contracted with the Egyptian companies to export the gas from Egypt to Israel for 20 years.