Israel and UAE companies sign MoU for energy collaboration International News
"The MOU is a historic milestone which will strengthen the Israeli economy, ensure energy security for the countries in the region, and propel EAPC and the Israeli economy forward"
Israel: Israeli state-owned company Europe Asia Pipeline Company (EAPC) and MED-RED Land Bridge (MRLB), a joint venture between Petromal – an integrated oil and gas company based in Abu Dhabi – and other Israeli companies, have signed a binding MoU for energy collaboration.
The agreement covers storing and transferring oil and oil products through the EAPC pipeline network and storage tanks, from the UAE and other Eastern markets to the West, and from the Mediterranean to the Far East.
The signing ceremony in Abu Dhabi concluded several weeks of negotiations among the parties to create one of the first public-private-partnerships between an Israeli state-owned company and a JV with a UAE-based company since the signing of the Abraham accords in August.
Hisham Abd Ahmid Ahmid, Chairman of Petromal, said: “We are pleased that Petromal is part of this public-private-partnership, the first of its kind since signing the historic agreement between the UAE and Israel. We look forward to working closely with our new partners to execute this venture and add value to the global energy security. This opportunity would not have been possible had it not been for the signing of the Abraham Accord, and we continue to look for more areas of collaborations to generate more value for both UAE and Israel economies."
The collaboration is significant for the global energy market, since it offers oil producers and refiners the shortest, most efficient, and cost-effective route to transport oil and oil products from the Arabian Gulf to Western markets. Moreover, it provides access for Asian consumers to oil produced in the Mediterranean and Black Sea regions.
MRLB is a joint venture between Petromal, an integrated oil and gas company based in Abu Dhabi, and Lubber Line, an international company owned by Yariv Elbaz, which specializes in investment in international projects in the infrastructure and energy sectors; and AF Entrepreneurship, an Israeli company owned by Yona Fogel and Malachi Alper, two of Israel’s most seasoned business executives, which develops and operates projects and ventures in the energy sector. MRLB is in advanced negotiations with major players in the West and in the East for long-term service agreements, the statement adds.
As per the MOU, EAPC will provide management services of the infrastructure, enabling transmission, and storage of the oil and oil products.
“This is a historic agreement, which further broadens EAPC’s international collaborations. There is no doubt that this agreement is of high importance to the Israeli market, both economically and strategically, with joint investments extending a decade into the future. I am thrilled about this collaboration with our friends from the UAE, our neighbours in the Middle East. This commercial agreement has clear geopolitical significance,” says Erez Halfon, EAPC chairman.
The geopolitical changes in the Middle East as witnessed by the Abraham Accords recently signed between Israel and the UAE, spearheaded by the Trump administration, have provided an opportunity for mutual endeavours in diverse areas, including the energy sector.
"The MOU is a historic milestone which will strengthen the Israeli economy, ensure energy security for the countries in the region, and propel EAPC and the Israeli economy forward," concludes Itzik Levy, EAPC CEO.
Posted Date : 21-10-20
Categories : International News
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