Advert

Oil well is likely next year

Oil drilling firm expects to gain approval from the government

A due diligence exercise on Genel Energy is under way and a final decision is expected soon, according to a government spokesman.

A due diligence exercise on Genel Energy is under way and a final decision is expected soon, according to a government spokesman.

An oil company can start drilling for oil in Maltese waters next year if the government gives it the green light.

This will only be the second well to be dug in a decade as part of the country’s efforts to strike oil.

Sources close to Mediterranean Oil and Gas, which has a Maltese oil exploration licence, said that “the scientific part of the exploration is now over and the company is aiming to start drilling in 2013”.

The area is situated to the south, close to Libyan oil producing zones.

The company, which has just announced a partnership with Genel Energy on the Malta licence, is waiting for the government to extend its licence for another year to enable it to start drilling.

The partnership is being contested by Leni Oil and Gas, a small oil company that had a minority share in Mediterranean Oil and Gas.

Reuters reported yesterday that Leni, which sold its 10 per cent stake in August, could start legal proceedings against its former partner. The company said it would not have sold its interest “for $1 plus liabilities” had it been aware of interest from Genel Energy.

A government spokesperson said a due diligence exercise on Genel Energy was under way and a final decision was expected soon.

He indicated that the exercise was expected to yield positive results and the government would give its go-ahead for the drilling to start.

Asked what proportion of oil would come Malta’s way should drilling be successful, he said it depended on the size of the find and its profitability.

The chief executive of Genel Energy, which was set up last year, is Tony Hayward, the former top official at BP, a British oil company, who was forced to resign after a major oil spill from an oil rig ruined the Gulf of Mexico.

Genel Energy is becoming an important player in the oil industry and over the past few weeks announced mergers in a number of exploration sites, including Tunisia and Libya. Listed on the London Stock Exchange, it is already the largest oil producer in the Kurdistan region of Iraq.

Mediterranean Oil and Gas signed a production sharing contract with the government in July 2008 with anchorage in the south of Malta close to oil producing sites offshore Libya.

The company took longer than expected to reach the drilling phase as it wanted to carry out more comprehensive scientific surveys on the geology of the area using 3-D technologies, the latest in the field.

According to Genel Energy, which has committed $30 million to the deal, the seismic surveys identified a number of plays – potential oil reserves in a particular geological setting – and several prospects have been defined in each play type.

“It is now apparent that this part of offshore Malta is geologically analogous to the Libyan Sirte basin, containing analogues to proven producing fields in Libya in addition to those in offshore Tunisia,” Genel said in a recent statement.

The last exploratory oil well drilled under a Maltese licence goes back to 2002 when Italian company ENI drilled Lampuka 1 in part of Area 3, also in the south of Malta.

Despite shows of oil and gas, the well was abandoned as it was not commercially viable.

[email protected]

Additional reporting by Kurt Sansone.

Advert

41 Comments

Post comment

Please see our new Comments Policy

Comments are submitted under the express understanding and condition that the editor may, and is authorised to, disclose any/all of the above personal information to any person or entity requesting the information for the purposes of legal action on grounds that such person or entity is aggrieved by any comment so submitted.

At this time your comment will not be displayed immediately upon posting. Please allow some time for your comment to be moderated before it is displayed.

For more details please see our Comments Policy

Your User Profile is incomplete.
Please click here to complete your profile before posting comments.

A. Caruana

Sep 6th 2012, 21:29

Prosit sur Camilleri

Alfred J. McEwen

Sep 9th 2012, 10:59

Alfred J. McEwen
@Mario Camilleri

A very good analogy....Prosit

Michael Debono

Sep 15th 2012, 11:58

under regrets i had a few u forgot to mention non arriva

vella m

Sep 6th 2012, 15:49

@Joe Portelli,you are so right,I agree 100%.

W Cassar

Sep 6th 2012, 11:30

Well said!

Michael Debono

Sep 15th 2012, 12:02

i hope ur joking "the whole country will benefit" just look at west africa and nearer home Aberdeen and tell me it has benfitted now its on a par with london price wise and the fishing fleet decimated(the main employment in Aberdeen before oil?The only thing u will benfit from is poverty.The winners will be the usual suspects who will be filling there coffers as per usual

W. Grech

Sep 6th 2012, 11:42

..we can do a monument for this government if it so pleases you....but if for arguments sakes oil is actually found...would it erase all the inconsistencies of the present government ? Finally he would give back some of the Malta he sold

Ms Xaxa Caruana

Sep 6th 2012, 13:29

Very well said Mr.Pulis, same thought.

Pat Hobson

Sep 6th 2012, 11:02

@G.Agius. You're being sarcastic, right?

W. Grech

Sep 6th 2012, 11:44

....lol...bis-serjeta ????

Ġ. Agius

Sep 6th 2012, 13:21

of course, it was always a PN government who safeguarded oil interests for Malta.. if it were for labour we'd give it all to Libya

Pat Hobson

Sep 6th 2012, 10:27

@Alex Falzon

"L-elezzjoni x'ghandu x'jaqsam... allura jekk isib iz-zejt il-PN ifisser illi trid tivvota lil PN bilfors??"

Wara d-dizastru finanzjarju li hawn fil-pajjiz?

U ZGUR LI LE!!!!

joe vella

Sep 6th 2012, 10:35

allura ghalfejn kull meta toqrob elezzjoni jibda jissemma t-thaffir ghaz zejt?

dil mistoqsija ghamila lill PN u lill PM , tista tuza l-website taghhom issa!

Hafna nies drawha din il parodija, anzi nkunu qed nistennewha!

A Cuschieri

Sep 6th 2012, 12:10

It's a report about a private company that's waiting for Gov's green-light to start drilling. Imma ssoltu kollox hazin li jsir hawn Malta ghal certu nies.

Issa nibdew, sena qabel l-elezzjoni ma naghmlu xejn halli l-bloggers tal-PL ma joqodux jghidu "dan qed isir ghax gejja l-elezzjoni".

Il-Gvern ghandu dover li jibqa jahdem ghal gid tal-pajjiz sal-ahhar jum qabel l-elezzjoni, u hekk qed jaghmel.

A Trapani

Sep 6th 2012, 16:08

@ Pat Hobson.... dizastru finanzjarju ? are we sure we're living on the same tiny island ?

Charles Grixti

Sep 7th 2012, 04:46

This fine point unfortunately goes above everyone's heads as they get excited about the prospect of finding Oil. The usual cartel and their enables will reap all the benefits and we will get all the pollution. Unless the oil fund be nationalised like Chavez did in Venezuela, then it is the big oil companies that will benefit, and there is little chance of that happening under the PN who are all in favour of privatisation.

I hope that they do not find oil but if they do, the people will be in for a rude awakening, much like what happened with all the hopes they had for finding Eldorado by joining the EU.

mark johnson

Sep 6th 2012, 10:22

No joke.

This is how JM will pay for cheaper fuel bills.

Spread the wealth around.

Advert
Advert