web analytics
April 16, 2014 / 16 Nisan, 5774
At a Glance

Posts Tagged ‘Ampal’

Israeli Company Walks Away from Egyptian Gas Holdings, Owner Sells Yacht

Friday, May 18th, 2012

Ampal-American Israel Corp (Nasdaq: AMPL; TASE:AMPL) decided to write off its entire 12.5 per cent investment in East Mediterranean Gas, the company that sold Egyptian natural gas to Israel before Egypt called off the exports.

Ampal, which is controlled by Israeli tycoon Yossi Maiman, said this week that the cancelled 20-year deal and uncertainties about the future of Egypt led to its decision to consider that its holding in has no value.

Maiman, who back in 2006 was 18th on the list of Israel’s richest people, has put his yacht up for sale this week, as a belt tightening measure, following the poor performance of his company. The asking price is $35 million for the Noa 7, named for his daughter.

Maiman is trying to reach a settlement with Ampal bondholders, whom he recently reportedly told, “I have no money.”

The Noa 7 is a luxury yacht with several bedrooms, a gym, Jacuzzi, swimming pool, and tanning promenades.

Ampal has not entered in its books any amount it might stand to gain as a result of the legal battles it is conducting against the Egyptian government and the Egyptian gas company.

Ampal contends that the Egyptians are in breach of their contractual commitments, by not protecting the expected supply of natural gas from terrorist attacks in the Sinai. Its law suit is seeking compensation from the Egyptian government for the damage caused by the repeated stoppages in gas deliveries, which the company estimates at billions of dollars.

Egypt killed its 20-year gas deal with Israel last month, saying the Israelis hadn’t paid their bills. Israel, for its part, says it stopped the payments because the terrorist attacks all but cut off the gas supply last year.

The attacks became a serious threat to the pipeline after Egyptian President Hosni Mubarak had been toppled last year. has sued the Egyptian government over the disrupted gas supply.

Egyptian critics charge that Israel was getting the gas at below-market prices—which Israel denies—and that Mubarak’s cronies were skimming millions of dollars off the proceeds.

Israel relied on Egyptian gas for 40 per cent of its supply, and viewed the deal as a key component of its peace agreement with Egypt.

Ampal said it recorded charges of $260.4 million in the first quarter of 2012 in connection with its stake in East Mediterranean Gas.

Ampal’s financial report for the first quarter of 2012 states that it has a shareholders’ equity deficit of $132 million, after a net loss of $215 million for the first quarter, compared with a net profit of $17 million for the same quarter in 2011.

Egypt Halts Gas Supply to Israel, Concerns Over Future of Treaty Arise

Monday, April 23rd, 2012

Despite major concerns being raised about the future of peace between Egypt and Israel in the wake of Egypt’s decision to terminate the a contract to provide natural gas to the Jewish State, Foreign Minister Avigdor Lieberman said Monday that he hopes the dispute will be solved in a business environment, and that relations between the two countries will return to normal.

“We want to believe this is a commercial dispute, and not a political one,” Lieberman told Army Radio on Monday.  “The peace agreement is important to Israel, and no less so to Egypt.”

On Sunday, Egypt announced that it would no longer provide natural gas to Israel, a $2.5 billion, 15 year arrangement made between Israel and then-president Hosni Mubarak in June 2005, but predated and bolstered by the 1979 Egypt-Israel peace treaty, which stipulates that the countries will trade normally for products such as oil.

Egyptian officials say the decision to stop supplying gas to Israel was a commercial one and that Israel has not paid for gas Egypt has been sending.  Israeli officials say Israel was up to date in payments, and paying a fair price for the product.  “EMG (East Mediterranean Gas) considers the termination attempt unlawful and in bad faith,” said Ampal-American Israel Corp., which owns 12.5 percent of East Mediterranean Gas .

The provision of gas by Egypt to Israel has been mired in controversy and difficulties, with Muslim Brotherhood and Islamic party representatives decrying the agreement, and the pipeline between the countries being bombed 14 times in Sinai since the Arab Spring took hold of Egypt in January 2011.  The latest attack was on April 8. Ampal has been in international arbitration to get compensation for the supply shortages it has suffered due to the attacks.

Though Israel has continued to function normally despite the frequent gas disruptions and the current halt in supply, electricity prices have risen significantly since the pipeline attacks began, and the possibility of periodic blackouts during the summer has risen.  Prior to the attacks, 40% of Israeli electricity needs were being met by Egyptian gas.

The failure of the natural gas deal was viewed ominously by Israeli leaders on Sunday night, with the Finance Ministry calling Egypt’s actions “a dangerous precedent that casts clouds over the peace agreements and the atmosphere of peace between Egypt and Israel.”

Minister of Energy and Water Dr. Uzi Landau said that he instructed officials already two years ago to prepare for a halt in gas imports from Egypt.

Dr. Landau has spent the last few years in office preparing the country for energy independence, which is proving an even more vital strategy due to yesterday’s announcement in Egypt.

Printed from: http://www.jewishpress.com/news/egypt-halts-gas-supply-to-israel-concerns-over-future-of-treaty-arise/2012/04/23/

Scan this QR code to visit this page online: