Malta-Libya oil exploration breakthrough 'about to happen'

Foreign Affairs Minister Tonio Borg told Parliament yesterday that the current situation between Malta and Libya on oil exploration in the waters between the two countries was promising and he expected the long-awaited breakthrough to happen.

Dr Borg was answering a series of supplementary parliamentary questions by Opposition leader Alfred Sant and Labour MP Joe Mizzi.

In answer to the original question by Noel Farrugia (MLP), Dr Borg said the mixed commission between Malta and Libya was expected to meet later this year. Mr Mizzi asked if oil exploration was on the agenda.

Replying in the affirmative, Dr Borg said the issue had been dragging on for too long and it was time for concrete progress. The matter had also been raised in a meeting last April and it had been agreed to move from general issues to more specific ones, such as joint exploration. With Libya, the government was discussing particular options in search of agreement.

Dr Sant said it seemed that the major issue was whether there should be bilateral or multilateral agreement. In the past the government had been of the opinion that Malta's interests would not be best served by multilateral agreement, for various reasons. But the fact was that multilateral considerations still came in bilateral negotiations. Since bilateral negotiations had not given results for the past 15 or 20 years, it would seem that multilateral negotiations were the best.

Dr Borg said he had sought to tackle the issue immediately on taking office. In 1985 the International Court of Justice had decided on a demarcation line just north of the median line between Malta and Libya, to the latter's advantage. The areas to the east of that demarcation were disputed by Libya and Italy, while the situation west of the line was more complicated because even Tunisia was disputing.

The government was trying to settle with Libya and Italy, and concrete developments had occurred on both sides. The current situation seemed to be a choice between joint exploration and referral to a tribunal or court. The government was trying to decide which was the better option, but even so it would have to settle on those lines with its counterparts.

Dr Borg said there seemed to be the political will to tackle one option and settle, rather than keep discussing generics. If oil was found before such a settlement, the resultant controversy would be greater. What he personally saw as the best option was joint exploration, which at least implied agreement for action between two countries, in preference to referring the matter to the International Court of Justice or a tribunal that existed under the aegis of international maritime law.

Dr Sant said that during the past 20 years, various Maltese governments had tried to settle on joint exploration. The situation was one of asymmetrical interests, wherein the other countries involved were getting away with it. They were playing a waiting game, while Malta was the only player for whom waiting was not in its interest. The lack of symmetry should be solved politically on bilateral terms, and in general on multilateral terms. What was currently happening was basically repetition over repetition.

Dr Borg said all parties should get there with due attention and concrete options. Malta's view had not been accepted in 1985, and purely technical discussions were not the way out. There had been oil finds in both north and south. After his latest visit to Libya they had shown readiness to discuss, but with different preferences. There should now be a final meeting for a definite decision, but joint exploration still seemed the best option all around.

Mr Mizzi asked if by joint exploration one meant just a study or an agreement to actually start drilling. What would happen after a technical visit?

Dr Borg said he could not answer on a technical level, but there were models of joint exploration that could be discussed. A multilateral decision would be too complicated to arrive at. Much the same could be said about the situation with Tunisia, but these were on identifying the joint area.

Mr Mizzi said the Labour administration of 1996-98 had itself tried to reach agreement with both Libya and Tunisia. Had the underlying principle remained the same?

Dr Borg said Libya had gone to the International Court of Justice. It had won its case against Tunisia but was still trying to reach agreement with its neighbour. Malta would be doing the same.