End of the Egypt Gas Deal
By Micah Halpern
Thursday May 17, 2012
I've Been Thinking:
Ampal - American Israel Corp., the Israeli energy company, owns 12.5% of East Mediterranean Gas, the Egyptian owned company that exports natural gas to Israel and Jordan.
Yesterday Ampal wrote off their investment and gave it up. They have been invested in the company for 20 years.
Their pipeline was being bombed on an almost monthly basis. And when the first quarter figures came in, it became apparent that Ampal was taking big losses. Some tanking was expected but the dollar figures more than proved the point. Last year Ampal made $17 million in the first quarter. This year's first quarter losses showed $215 million.
No company can justify that loss.
Ampal, the Israelis and the American investors all need to cut their losses and run.
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