Government prepared to consider 'any' oil sale offer

The Government yesterday said it was prepared to consider any offer purportedly made by Libya to sell oil at a preferential rate.

In a joint statement, Foreign Affairs Minister Michael Frendo and Government Investments Minister Austin Gatt said that any such possible offer would be discussed within the context of the continuous negotiations between the two countries.

The ministers were replying to a statement by Opposition spokesman for Foreign Affairs Leo Brincat, who questioned the Government's seeming reluctance to react to a newspaper interview with Libyan Ambassador Saad El-Shelmani.

Mr El-Shelmani had told il-Mument that Libya was prepared to discuss the renewal of its former preferential oil agreement with Malta.

Mr Brincat argued that Libya's invitation was even more attractive, considering that the ambassador said that he felt there was no need for a new written agreement between the two countries, but rather a renewal of past agreements.

Dr Gatt and Dr Frendo however said that the purchase of oil not from commercial markets did not necessarily mean that it would always be cheaper, or in the best national interest.

In a brief counter-reply yesterday evening Mr Brincat said that in the light of the exorbitant prices of oil on international markets, the Maltese Government should have explored this possibility (of importing oil from Libya) before the offer was made by the Libyan ambassador.

It was the duty and the responsibility of the government of the day to seek the best price and conditions to buy oil and ancillary products. From their reply the ministers appeared to be failing to take action.

Oil prices hit a record $68 a barrel on Thursday after the US reported a fall in petrol stocks. Fears that the tropical storm Katrina might hit production in the Gulf of Mexico also pushed the cost of oil higher.

But on Friday oil prices fell back after it appeared that Hurricane Katrina would not cause major damage to oil and gas facilities.

A number of factors are continuing to fuel the recent high oil prices. These range from the US warning of reduced petrol stocks, to China seeing sharply rising crude imports in the face of surging demand.

Continuing high oil prices are starting to hurt consumers - including the Maltese, who have been subjected to a 17 per cent fuel surcharge on their electricity bill, an airline fuel surcharge and heftier petrol prices. Many fear that the domestic surcharge could soon be revised upwards.