Egypt-Saudi Arabia maritime demarcation agreement makes headlines again - AL MONITOR

Tiran (foreground) and Sanafir (background) islands between
Egypt's Sinai Peninsula and Saudi Arabia

July 9, 2019

Rami Galal 

CAIRO — The issue of sovereignty over the two islands of Tiran and Sanafir in the Red Sea at the Strait of Tiran leading to the Gulf of Aqaba is once again making headlines in Egypt. The country had witnessed a wave of anger three years ago against the backdrop of the signing on April 8, 2016, by Egypt and Saudi Arabia of a maritime border demarcation agreement, under which Saudi Arabia gained sovereignty over the islands.

During a meeting with an Egyptian parliamentary delegation June 26, Red Sea Gov. Gen. Ahmed Abdullah revealed great gains for the Egyptian economy that are about to materialize as a result of the 2016 agreement. “A large number of people focused on the islands of Tiran and Sanafir and completely ignored the economic gains that the Egyptian citizen will gain,” he said.

According to Abdullah, Egypt has been able, after the agreement, to exploit the wealth in the Red Sea. He explained that the border demarcation agreement allows Egypt to drill in deep territorial waters because the International Law of the Sea defines territorial waters and economic waters as well as the equidistant line between countries. The International Law of the Sea does not determine the maritime borders between countries.

Egypt dreams of new pipelines crossing the Red Sea - ABO (About Oil)

Alessandro Scipione (Agenzia Nova) - June 15, 2016

The latest agreement between the government of Cairo and Aramco is just one of the pieces that make up Egyptian strategy, created to transform the country into a regional energy hub. The aim is ambitious but feasible with the financial help of the Gulf countries

Egypt could become a world class energy hub, not only due to recent gas discoveries in the Eastern Mediterranean, but also due to the black gold arriving from Saudi Arabia. This is the aim of the lucrative agreement signed during Saudi King Salman’s first visit to the Land of the Pyramids. The agreement will ensure large supplies of oil at discounted prices: approximately 700,000 tons of oil products per month - respectively, 400,000 tons of diesel, 200,000 tons of gasoline and 100,000 tons of mazut - amounting to a total of €23 billion, to be paid within 15 years at an interest rate of 2%. The Saudi Fund for Development will directly pay the energy giant Aramco the cost of supplies, enabling the Egyptian General Petroleum Corporation (EGPC) to pay calmly.