Two oil exploration wells by 2011

Andrew Hili

Nov 16th 2008, 00:41

The posts here made quite an interesting read....what could be of benefit to everyone on this minuscule island was turned into a political farce...as always!

Mela the fact that Dr. Gonzi keeps lowering tax bands every year and had also said that his intention is to keep on lowering them and might even phase them out really makes me wonder whether he is loosing it or else he knows something that we don't know...in other words he knows that we have oil and a good supply at that!

I have always said that Malta should have oil due to our position, but something is keeping us back....could also explain why Mintoff and Gaddafi were and still are the best of friends!!!

Let us hope that matters resolve and oil drilling will resume and be successful. The whole of Malta will benefit from this...and please let's not start with such things as "More toxic produce, more polluted air, more damage to marine life, etc"...if we find oil it will be like a poor man winning the lottery!

J Martinelli

Nov 15th 2008, 23:09

@ Steve Rogers.

With things so bad why do you stay in Malta ?

For your information the Blue Jays did win the World Series, twice in a row.

I do not live in the 'cold wilderness of Canada' contrary to what you think. I am warmer here in winter than you are there because homes here are designed for the weather. I am toasty in winter and cool in summer. The only difference here is that I am quite ready to pay for the comfort and do not expect any charity (or subsidy) from the government like you do yourself.

And, for those who think that finding oil will make Malta rich, better think twice. There is no doubt that Malta will benefit but after production costs are removed from the revenue per barrel, the expense of shipping by tanker to the closest refineries, the expense of refining and shipping back to Malta are taken care of, then the price at the pump will be somewhat lower but not by very much.

We have no space, nor the funds to build a refinery here. Besides, I know of no refinery which does not create an environmental concern.

stephen camilleri

Nov 14th 2008, 23:55

I know where the oil is i will start drilling next year and make this island rich,its in my back garden and there is about one barrel i think,that should make me 55 dollars.

James Hamilton

Nov 14th 2008, 14:59

Malta's exploration history can be found below.

http://resources.gov.mt/default.aspx?MLEV=10&MDIS=49

As can be seen from the chart oil and gas are present in some of the exploritory wells, but obviously the quantity is not enough to warrant drilling.

There is probably enough gas and oil to make us self sufficient for a great many years, but the cost to set this up would be far too great.

So by all accounts Mr Mizzi is quite correect..

G. Curmi

Nov 14th 2008, 14:34

Has Mr. Mizzi forgotten that during the regime of his former party leader Dom Mintoff, oil rigs were doing exploratory drilling on behalf of Malta inside Malta's territorial waters? Whatever became of that Mr. Mizzi? Was the failure to discover oil reserves during Mr. Mintoff’s regime because his regime did not “do all it could for oil exploration to be successful", or was there some other reason?

Since Mr. Mizzi would have us believe that he knows where oil can be found within Malta's territorial waters, has he considered becoming a consultant for oil exploration companies? His "gift" for locating oil reserves would save millions of Euros in exploration costs and would be welcome by any oil exploration company. If Mr. Mizzi possesses such a "talent", he should share his knowledge with the nation. Then, upon successful discovery of oil based on his predictions, Malta would hail Mr. Mizzi as our nation's hero, while he becomes very wealthy in the process.

Please Mr. Mizzi, tell us where the oil is, or if you are just blowing hot air, keep you silence.

Duncan Sant

Nov 14th 2008, 09:11

@Edwin Formosa
You are right, I'll probabbly say "just above $50 a barrel"

J.Pace

Nov 14th 2008, 08:22

Now we will find oil before the next election for a change , or we will be almost to find it .. this is an old story... Election and budget games !!!
may god help us and find oil, than we will leave as dubia? (no more tax to pay) or we have to give almost all profit to EU ?

Paul Savona

Nov 14th 2008, 08:12

Although it is true that if a country in Oil Producing it does not mean that the "people" are rich as can be seen in 3rd World countries such as Venezuela and Nigeria. However, if Malta does become oil producing the people should benefit in other areas such as the price of petrol.

In Trinidad for instance, an oil producing nation, you would pay €0.45 a liter for unleaded and €0.25 for diesel. This also includes the price of Road Tax. Meaning that in Trinidad you do not have to pay a separate Road Tax per year, the Tax is in fact included in the price of the petrol and diesel. Obviously the fairest way to charge the tax. The more you consume, the more tax you pay. Hence, polluter pays. Cannot say fairer than that.

I would hope that if there is any benefit, we would at least see it at the pumps.

EdwinFormosa

Nov 14th 2008, 06:54

"""W&E tariffs your precious PN is imposing when Oil is just above $55 a barrel......"""" How clever!!!!! You wont be able to repeat it next week.

Raymond Sammut

Nov 14th 2008, 00:54

May there never be an oil well. An oil well will be yet another curse for little Malta. More toxic produce, more polluted air, more damage to marine life, more developments, and all the pestilences and excesses that this accursed material brings with it.

Steve Rogers

Nov 13th 2008, 22:12

Mr. Martinelli,

Can you explain to us what events lead you to leave this tiny gem of an island for the cold wilderness of Canada? Was it an oppressive Labour Government?

If so, why have you not returned in the 20 odd years that the PN has set up an utopia in Malta? People highly opinionated and knowledgeable as you should have no trouble finding a good job and resettling back here. Or perhaps you are hoping that the Blue Jays will bring the World Series to Toronto? I can watch all the MLB and NHL games comfortably in Malta too!

p.grima

Nov 13th 2008, 21:56

@-Duncan Sant -

Just for the record, those tariffs were not just "proposed" in 1997.
Some of the bills WERE distributed. I had paid ONE of those hefty tariffs in 1997 myself. Then, after the 1998 election, I had only CREDIT on my W&E bills which lasted for the following year and a half.

J Martinelli

Nov 13th 2008, 21:51

@ Duncan Sant

Yes, oil at $55.00 is just above $12.00. Do your math!

@ J Abela

You think that oil companies are as dumb as your comments by spending millions of their own money chasing dry wells and to issue an excuse for not finding oil ?! Too rich!

And the best for last. The government will use the excuse come election time! Even richer than the first.

@ Jesmond Zammit

It's late in the day so I need your help with understanding your logic. Please illuminate me!

Rainier Xuereb

Nov 13th 2008, 21:24

I am a maltese mechanical engineer working in Aberdeen in the oil and gas sector. I have spoken to prominent people from Shell and they too believe that there is oil around the Maltese Islands. However the area is very enviromenatlly sensitive they added.

Duncan Sant

Nov 13th 2008, 19:39

@J Martinelli

Funny how you keep mentioning Labour's proposed W&E utility bills raise and you don't speak about the Universe High (and not sky high) W&E tariffs your precious PN is imposing when Oil is just above $55 a barrel......

James Hamilton

Nov 13th 2008, 17:27

If my memory is correct, didn't an American Oil Coy, (I think it was Amoco) discover oil when drilling of Gozo? I believe it was called the "Tama Well " .
Apparently they struck oil and gas but not enough for commercial purposes.

J. Abela

Nov 13th 2008, 17:15

Agree with jesmond zammit.

When 2010/2011 will come another excuse will arise something on the lines "we are so wealthy that oil exploration is not necessary" or "the project is not viable due to lack of resources".

Or most probably by that time will be all poor begging for help!.

jesmond zammit

Nov 13th 2008, 16:51

Mr Mizzi said that the oil is for sure in gozo well .pn goverment closed that well .propoganda to let people forget the budget

J Hughes

Nov 13th 2008, 16:03

Mr Mizzi, my advice to you is to keep quiet.
In the 60s BP drilled a well in Fahud Oman, spent millions of dollars and the well was dry. A few years later PDO (petroleum development of Oman) done a seismic survey over the concession, drill a well 100 meters away from the BP well, till today PDO is still producing from the same well.
How about drilling a well on Comino now, this time name the well ALL THE SAINTS instead of il Madonna taz zejt like the one in Gozo.
Millions are spent on oil exploration surveys (seismic survey) before even considering drilling a well.
It sounds like you have some reading to do and a lot of learning ahead of you. Get some advice and do some research before going public with such statements.

J Martinelli

Nov 13th 2008, 15:32

@ Eric Gahn

So, you would trust a Labour government over a NP? Labour governed for 18 out of the last 40 years. What did they do during their time? Ah! You will say that throughout the Labour years the price of oil was never over $12.00 a barrel, so it was not so economical to explore then. Why were other countries drilling all over the place while Malta tried but was abruptly stopped by its intimate friend, Libya? Malta just accepted the fact that Libya dictated.

Why then did a Labour government find it appealing to raise the W&E rates sky high in 1997 when the price per barrel was $12.00 or less? Would you trust another Labour government?

The last thing one should do is to adopt any Libya model.

Eric Gahn

Nov 13th 2008, 14:41

@ Steve Bonello

I beg to differ. I think finding oil will benefit this tiny rock greatly and since we are not 'natives' of some Banana Republic or have an unstable democracy I can see it working. What will make the scale of the benefits gained and shared by population vary will be 'who' will be doing the managing and controlling of these benefits. And to be honest, in this case I trust more a Labour Govt since PN has a history of selling everything worth selling under one excuse or another.

Libya has the NOC that manages all its oil reserves. Any company wanting to do drilling in Libya has to form a company in Libya in partnership with NOC with, as far as I am aware, NOC being the major shareholder. This ensures that the major beneficiaries are the Libyan people. Now I AM aware that in Libya there is a lot of corruption and the simple folk might not really benefit much but again, we are not a Banana Republic and I think that the Libya model of Govt administered resource works best.

A. Muscat

Nov 13th 2008, 14:21

No Americans troops - no oil
When there’s a crime, the French says ‘Chrcher la Femme’
Well, the USA never had serious interest in Malta, apart from establishing the CIA- branch in Ta – Qali - this simply means Malta has no oil.
By the way, oil exists every corner around the globe, but the crucial question will always be – is it viable to explore?

J Martinelli

Nov 13th 2008, 13:55

I pose a question to Labour MP Joe Mizzi:

Had the 'small oil company' been engaged and started drilling and the credit crunch came, as it did, would this company have stopped half way through the process?

What would have been achieved then?

Is this the kind of hurried policy the MLP embraces?

Haste makes waste - Il-qattusa ghaggelija taghmel ulied ghomja.

The public took the MLP and Mr. Mizzi's declaration around election time with a grain of salt and we all know the results.

Paul Smith

Nov 13th 2008, 13:33

this is strange, wasnt it anounced a few weeks back that Malta has found x-amount of billion barrels?

Whos is lying?

I also agree with S. Bugeja, water is a serious issue, but as usual the Government is asleep asnd it will fall on disater to do something.

J Farrugia

Nov 13th 2008, 13:33

@ Eric Gahn: If come the next election there is news about oil, it would be the oil companies and not the PM, who would tell the nation like Gasoil did a few days ago. The Government did not say anything at all. Moreover the PM has gone on record stating that in HIS opinion, should oil be struck it will just be a added bonus to our frail economy. So please put things in their proper perspective. And don't try to be funny.

Stephan Camilleri

Nov 13th 2008, 13:06

It must be made clear that who ever says that there is oil around the maltese islands, is just speculateing.

s.bugeja

Nov 13th 2008, 12:31

If it's money we're after we should think seriously about our water problem rather than oil. it has been reported that the ground water state is in a very serious situation. Think how many millions of litres of water go to waste after every rain shower. if we could save that water from going into the sea (to then pass through the reverse osmosis plants) we could save millions of euros every year in oil. isn't that similar to finding oil?

Steve Bonello

Nov 13th 2008, 12:23

@Philip Pace
I agree with you perfectly.

I would also like to add this:
If the amount of oil present is only enough for Malta does not that automatically make it economically non-viable ?

I don't think that finding oil will solve any of our problems, on the contrary. Just look at countries which have oil and then look at how the natives live and how strong their institutions are.

This website makes interesting reading for anyone who would like to enter the subject more deeply:
http://www.sscnet.ucla.edu/polisci/faculty/ross/doesoil.pdf

lgalea

Nov 13th 2008, 12:03

Steve Rogers
We cannot suck the eu coffer dry because we always pay more than we get. It is not the Government monthly payment that has to be considered, but also the loss from our foreign reserves which are now at the ECB, part of VAT, customs duties and levies which all go to the eu, the daily commuting of Government employees to Brussels and other places on eu business, the loss from the Italian Protocol, expenses incurred because of the illegal immigrants which we have to keep here due to eu regulations, loos of jobs due to eu regulations, etc....

philip pace
Why didn't you mention other countries that have oil like the USA and not third world countries where tribal wars and conflicts are the norm and the natural resources are exploited for the foreign companies who pay a small circle of friends to subdue the people? If there was no oil or gas in Gozo, why did EFA order the drilling to continue?

Steve Rogers

Nov 13th 2008, 11:32

@Eric Gahn

I can't picture the PM dressing up as Santa Claus; he's too thin. But I know a certain MP who can.....

Jokes aside, some valid points are made. The Libyans have deterred us from pumping oil for years leading one to think that there must be sustainable quantities or else we would be pulling oil from the same vein. Either way there must be something if they are worried.

In regards to the benefits on our society in comparison to Nigeria and Venezeuela, well these countries are true banana republics who have had a turmoiled political history. Libya benefitted well from oil exploration. I have an Encyclopedia Britannica from 1967, it states that Libya is a resource barren country - it has truly moved along since then.

Also is it not in the interests of the EU that is sees Malta pumping oil? If Malta becomes "oil rich" would we not be in a position to actually start contributing to the EU coffers rather then suck it dry?

philip pace

Nov 13th 2008, 11:08

Mr. Mizzi.
What you are saying is quite unbelievable.
How do you know that there is oil in the area that you mentioned.
Think before you leap, please.
And think hard on the following.
If there is oil in the areas that Malta has power on, we need someone to explore.
If the exploration is successful then we need someone to drill for the oil.
If oil is found it is only crude oil which is useless to put in the cars and other items that work on oil for the simple reason that it needs to be refined.
There we need an oil refinery.
Long list. eh!
Looking at the standard of living in countries like Venezuela and Nigeria-countries that have oil, can you really tell me what shall be the standard of living of Malta when we find oil and then refine it?
The standard of living of those two countries explains it all as then there would be a rock solid committee that determines everything and Joe Citizen would only smell the oil as he won't getting much.
It is all theory and speculation and nothing else.
So both parties stop dangling this unreachable carrot.
Understand!
Opinions?

Brendon Cassar

Nov 13th 2008, 11:05

The only companies that would be viable for them to extract such a small amount of oil would be a large established company. What should be considered? So first of all the effects of oil pollution for Malta would be devastating and therefore you would need a proven risk mitigating company to do the job. Secondly, although the amount of oil is small compared to lets say Libya's supply but it would be enough for Malta for a couple of years. There is also the fact that the oil that we would be recovering is connected to our friends the Libyans and that would be taking money from their pocket. I am mentioning this as most of you do not know that when oil extraction was a possibility for Malta the Libyan government had informal meetings with the oil companies operating in Libya and basically told them that if they go down a certain road their companies will not be allowed to operate in Libya. Now which company in its right mind will loose Libya’s millions for Malta's small amount. I also wish that we could extract Oil but the politics do not allow. At least not yet.

C.Sapiano

Nov 13th 2008, 11:01

Is MR.MIZZI really serious. If he really knows where the oil ?! is why shouldnt he give his help. He should love his country before his party.

s.bugeja

Nov 13th 2008, 10:22

Since Mr.Mizzi knows where the oil is (to the extent that he also knows the quantity it seems.)why doesn't he tell the government where to drill in the interest of the maltese? The fact that the oil is in such small quantities and no major company would be willing to explore which company would be willing to drill for it? would the oil be more expensive to bring up than to exploit? In other words Would the sauce be more expensive than the fish as we say in maltese?

Eric Gahn

Nov 13th 2008, 10:15

@ J Farrugia. I do not beleive what Mr Mizzi knows is some big secret. Just wait until the next election when Gonzi comes out dressed as Father Xmas and tells us all that we are now rich beyond belief thanks only to the PN Govt........like their great-grandfathers put that oil in the ground all those eons ago.

J Farrugia

Nov 13th 2008, 10:07

This Hon. Member of Parliament some months ago had stated that he knew where there is oil around Malta. But to date he never told any one where it is. Or is he waiting for a Labour Government to tell one and all? No wonder we take some MPs with a pinch of salt.