Sensitive Egypt, Israel oil talks

Press, 18 April 1979, Page 8

Sensitive Egypt, Israel oil talks

NZPA-Reuter Jerusalem The Israeli Energy Minister (Mr Yitzhak Modai) will meet the Egyptian Petroleum Minister (Mr Ahmed Ezzeddin Hilal) in the Sinai today to negotiate on Israel’s evacuation from the desert oilfields. Under the terms of the Is-raeli-Egyptian peace treaty signed in Washington last month, Israel is scheduled to hand over to Egypt by next October the last Sinai oilfields near A-Tor township. In the first working meet-1 ing at Ministerial level since I, the treaty was signed, Mr] Modai will meet Mr Hilal at the Abu Rudeis oilfields, 120 km north of A-Tor. ' These fields were returned to Egypt in 1975 under the Sinai disengagement of forces agreement. They will then travel together to the A-Tor fields, about which the two sides had differed sharply before; the treaty was concluded. The Israelis insisted they b

had discovered and developed the wells to the point that they provided Israel with more than 20 per cent of its annual consumption and demanded assured supplies on favourable terms. Israel has practically no other natural fuel sources and must import all its requirements. Egypt agreed to sell Israel oil from the wells only at world prices. Israel accepted the settlement after the United States promised to supply Israel’s fuel require- ’ ments in case of an emerIgency. I Mr Modai has told reporters that he would discuss the possible sale to Egypt of Israeli drilling equipment at A-Tor estimated to be worth SUS4OM. “We have to decide what is to be transferred and what is not to be transferred and over what period of time,” the Minister said. : Today’s meeting is expected to be only the first lof a series.