Account on oil exploration is long overdue

Will Malta ever strike oil? It is not for want of trying that it has not and, though many Maltese are sceptical about the possibility of the country ever finding oil, no sensible government will stop the island’s offshore oil exploration efforts. Disappointments there have been aplenty and difficulties over offshore rights keep cropping up all the time with Malta’s neighbouring countries. Often enough, people consider any announcement of the award of new licences close to an election as purely political gimmick, as if the award of a licence means, ipso facto, a find.

What is particularly striking about the whole oil exploration programme is the dearth of information every Administration has cared to give to the people over time. Maybe this is because governments are reluctant to raise false hopes. It is wrong to raise expectations unnecessarily but this should not keep an Administration from keeping the public well informed of developments.

When, for example, the government announced recently that the Resources Ministry had issued an international call for applications for oil exploration licences south and west of Malta, it would have been right and proper for the ministry to give an account of the situation as it stands today. The licences on offer are for exploration and for exploration and production in four offshore areas. The call closes in December.

When the government first announced its plans to offer new licences, Resources Minister George Pullicino said they felt the time was right for the move after the industry suffered setbacks from the economic crisis and the BP oil spill in the Gulf of Mexico. He was also quoted saying: “Now that the industry is recovering from the blows it has received, we feel it is time for a roadshow so that we could sell licences for oil exploration in territories which are ours and which have not yet been committed.”

This is well and good. However, since both Libya and Italy have contested rights held by Malta, it would have been appropriate for the ministry to give a résumé of the situation. Of course, the Libyan uprising has now put a stop to any developments that had been expected after Prime Minister Lawrence Gonzi met Muammar Gaddafi in Libya just before the conflict erupted and it would naturally take time now for the two countries to resume talks on the matter. Both sides had hoped for a solution to the problem and a technical meeting was scheduled to be held in Libya some weeks later.

There is hardly any need to go into the bitter disappointments Malta has had with Libya in its talks over rights in exploration areas to the south of the island known to have an oil-bearing potential. Hopefully, the new leaders will adopt a different attitude to that adopted by the Gaddafi regime but, until the situation stabilises itself, Malta can only wish the Libyan people well in their efforts to rebuild their country.

But what about the situation with Italy? Have there been any developments since Malta wrote a formal letter of complaint to Rome after the Italian government offered licences for oil exploration around Pantelleria, Linosa and Lampedusa? What was the Italian government’s reaction to Malta’s protests?

Tunisia too has had a revolution but is there any development in the government’s talks over joint exploration rights with that country?

Clearly, the time for an account of the situation is well overdue.