Libya oil deal: cargoes at fixed price for Malta, say Libyan reports

Malta will be receiving oil cargoes at a fixed price from Libya, according to reports by Africa Intelligence and the Libya Herald following up on a 24 June meeting between Prime Minister Joseph Muscat and Libyan counterpart Ali Zeidan.

According to both the market-leading publication AI and the English-language online newspaper Libya Herald, Muscat got Zeida to agree to deliver oil cargos at a fixed price in a bid at reducing the island's energy bill.

"Zeidan seems to deploying a lot of oil diplomacy at present. He has already made similar offers to Egypt and Tunisia," Africa Intelligence remarked of similar agreements Libya has made.

Tunisia already benefits from a delivery of 450,000 barrels of oil a month at preferential rates until the end of 2013 and 650,000 barrels of a month during 2014.

Joseph Muscat sought the advantageous oil deal in a bid at reducing the island's fuel bill, in tandem with preparations for a new 200MW power plant fuelled by liquefied petroleum gas.

The Delimara power station's 'phase 2' extension still runs on heavy fuel oil, but will eventually be converted to run on LNG. The government has invited 11 bidders to tender for the provision of a power-purchase agreement and construction of the new power station.