Updated | Government to hold talks over possibility of extending oil exploration

Genel Energy has today announced that it has abandoned the Hagar Qim-1 well as there is no indication of hydrocarbons. 

The company was granted the right to drill the well 120km south of Malta, however no oil has been traced.

In comments to MaltaToday, a spokesperson from the ministry of transport and infrastructure confirmed that the well was plugged after reaching the Eocene level.

However government will be holding talks with the company granted the right to drill in Maltese seas over the possibility of extending exploration.

“Phoenicia Energy Company Ltd have requested Government a six month extension to evaluate the results of the well and decide whether to enter into the Second Exploration Phase,” the spokesperson said.

Moreover, government will hold discussions in the coming weeks with Phoenicia Energy Company Ltd and Melita Exploration Company Ltd regarding this matter.

Asked what are government’s plans on oil exploration, the spokesperson said “government’s efforts will continue in this sector as it is only through further exploration drilling that one can truly evaluate the potential of Malta’s offshore acreage.”

Earlier this year, Genel Energy CEO Tony Hayward had said the area's geology presented a high-impact prospect to the company with the potential for field sizes of at least 250 bbl and he was confident in Malta's geology.

Addressing the Economist's roundtable in March, Hayward had said that the first results on oil drilling in Malta were expected by mid-July as the company started drilling at the end of March.

Genbel said that the Noble Paul Romano rig will now move to drill the Nour prospect on the Sidi Moussa block offshore Morocco.