Minister hails ‘important shift’ in Libyan relations for oil exploration
Finance Minister Tonio Fenech has welcomed an “important shift” in relations between Malta and the national transitional council of Libya, over plans to launch joint oil exploration efforts between the two sides.
Fenech also revealed that Libyan dictator Muammar Gaddafi had “never gave any sign of wanting to consider” any joint exploration in the zones in the Mediterranean Sea disputed by the two countries.
He was taking on RTK radio 103FM.
In February 2011, exactly a week before uprisings in Benghazi led to a civil conflict in Libya, Prime Minister Lawrence Gonzi had met Gaddafi over talks for technical delegations to resolve issues between the two sides relating to oil exploration on the continental shelf.
In March 2008, Libya issued a formal letter warning Heritage Oil Company Ltd – which had been contracted by Malta three months earlier to undertake oil exploration in the region – to desist from any activity in an area that the Great Libyan Arab Socialist Jamahiriya considered part of its territory.
Malta also claims part of the same continental shelf as its own – in particular, an 8,000 square metre stretch designated as ‘Area 7’ – but the Foreign Ministry stopped short of formally protesting when the Libyan government issued a concession to Sirte Oil Company Ltd to carry out oil exploration in the area.
A concession map published by Libya’s National Oil Corporation in 2007 clearly indicates that the area ceded to Sirte Oil Co. under this agreement covers the same territory for which Malta had granted a concession to Heritage Oil.
The Resources Ministry has issued an international call for applications for oil exploration licences in areas south and west of Malta. The government is offering exploration licences and exploration and production licences in Area 1, Area 4, Area 5 and Area 6. The offer closes in December.
Mediterranean Oil & Gas and Heritage Oil currently holds an oil exploration licences in Maltese waters.