Egypt, Israel Reach Oil Supply Accord

Energy Minister Yitzhak Modai reported to the Cabinet yesterday that Egypt has agreed to give Israel a $5 per barrel discount on the two million tons of Sinai oil it will sell to Israel this year. Egypt is currently marketing its oil at $40 per barrel of heavy oil and $33 per barrel of light oil. But the price will be adjusted every three months to reflect the changes in the world market price.

Israel will pay the going market price but will be reimbursed by Egypt in the amount of the discount, Modai explained. He said that according to the agreement reached in Cairo, the Sinai oil will be purchased by three Israeli companies–Sonol, Paz and Delek–which will deal directly with the Egyptian government. Negotiations for a new agreement for 1981 will begin near the end of this year, Modai said.

TELECOMMUNICATIONS, POSTAL LINKS BEGIN JAN. 27

The minister, whose responsibilities also include communications, elaborated on the opening of telecommunications and postal links between Egypt and Israel beginning next Sunday, Jan. 27. He said the postal service will handle special delivery and ordinary mail, air mail and packages of up to 15 kilograms. Provisions have also been made for regular and urgent telegrams between the two countries but not night letter service which is not furnished in Egypt.

As of next Sunday, telephone service to and from Egypt will be available through the international exchange. There is no direct dialing system in Egypt but direct phones to Israel could be put into use it. the Egyptians agree to by the telephone lines Israel has left in Sinai. Modai said that telephone telegraph and telex services will be in operation on a 24-hour basis. The International Postal Union and the International Telecommunications Union will be informed this week of the opening of service between Israel and Egypt.