The Egyptian General Petroleum Corporation (EGPC) and the Egyptian Natural Gas Holding Company (EGAS) have agreed to pay $500 million to Israel Electric Corporation (IEC) over natural gas deal disputes, according to a statement by EGPC and EGAS.
The amount of the settlement will be paid over a period of eight and a half years with a down payment of $60 million and a payment of $40 million after six months from the agreement’s activation date. The remaining amount will be paid in semiannual installments of $25 million for 8 years.
Payments will be guaranteed by a letter of credit from the National Bank of Egypt (NBE), in accordance with the provisions of Egyptian law.
In December 2015, the International Chamber of Commerce (ICC) ordered EGPC and EGAS to pay about $1.7 billion in compensation to the Israeli company after gas exports were halted due to pipeline disruptions.