Egypt in $500 million settlement with Israel Electric Corp

Egypt has signed a $500 million settlement with state-owned Israel Electric Corp over a defunct natural gas deal, the Egyptian General Petroleum Corporation (EGPC) and Egyptian Natural Gas (EGAS) said in a statement on Sunday.
The statement said under the agreement signed on Sunday, Egypt will pay the amount over a period of 8-1/2 years in exchange for the Israeli company dropping all other claims resulting from a 2015 arbitration decision.

The International Chamber of Commerce in 2015 ordered Egypt to pay Israel Electric about $1.8 billion in compensation after a deal to export gas to Israel via pipeline collapsed in 2012 after attacks by insurgents in Egypt’s Sinai peninsula.

Egypt appealed the decision and began discussions on a settlement. The EGPC and EGAS statement said the agreement was reached with government support and as part of efforts to ensure a “conducive investment environment”.