Al-Quds al-Arabi newspaper quotes Egyptian opposition members as saying government gave oil digging franchises to two Israeli companies. Infrastructure Ministry says unfamiliar with matter
Doron Peskin
Published:  06.06.09, 11:17 / Ynet

The Egyptian parliament has seen some temperamental discussions in recent weeks after members of the Muslim Brotherhood opposition movement said that franchises for oil digging in Sinai had been given to two Israeli companies.
 
According to a report published last week by Arab newspaper al-Quds al-Arabi, Parliament Member Ali Laban of the Muslim Brotherhood claimed to have obtained documents revealing that the Egyptian government franchises had been given to a company be the name of Exploration and to the Merhav Group owned by businessman Yossi Meiman.
 
The Egyptian MP added that the deals signed with the Israeli companies were secretly agreed on between the Egyptian Oil Ministry and the Israeli Ministry of National Infrastructures.
 
Laban argued that the Egyptian government was endangering the country's national security by allowing two "Zionist" companies access to Sinai. He demanded that the Egyptian government led by Ahmed Nazif reveal all secret agreements signed with Israeli companies related to digging oil in Sinai.
 
'Nothing of the kind happened'
Sources in the Egyptian ruling party said in response that the Muslim Brotherhood movement was making a great fuss about nothing, as part of its campaign against Nazif's government. The same claim has been made by the government in regards to the legal battle initiated by opposition members against the ongoing export of natural gas to Israel.
 
An official source in the Merhav Group denied the Arab newspaper report. "As a policy, Merhav does not operate in the oil drilling and digging area," the spokesperson said, adding that "the Merhav Group does not even have a license to drill."
It should be noted that Egyptian law prevents foreigners from utilizing the natural resources located in the Sinai area.
 
The Ministry of National Infrastructures said in response that it was unfamiliar with the matter.
 
Doron Peskin is head of research at Info-Prod Research (Middle East) Ltd

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