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.
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.
Additional reporting by Kurt Sansone.
41 Comments
Post comment
Please sign in or create your Account to post comments.
leo briffa
Sep 6th 2012, 17:14
they used to say that two very important people had to die for us Maltese to find OIL, well now they are both dead!! the question remains, why don't we ever find oil, is it because we don't look for it. 10 years 2 wells is not an effort.
PHILIP RIZZO
Sep 6th 2012, 14:59
Amongst the dreams of an oil well in time for the general election next year and all the talk about the creation of 20,000 new jobs over the past four years, am I , as a father of a disabled adult, not justified in asking why such a large portion of the Maltese population that totals 27,400 ( almost as many as the whole of the population of Gozo ! ) have not benefitted at all from the alleged past and promised future creation of wealth by Government.
Both political parties should note that the 27,400 disabled and the people who care and worry about their welfare ( say 5 extended family members per disabled ) total 150,000 , which is a significant 37% of all the
Maltese population and that this sector is very much aware that they are being ' left behind ' , economically speaking.
It should suffice to mention that:
1. Whilst less than 4% of the DISABLED are gainfully occupied, over 96% of the ABLED working population appear to hold full time jobs !
2. The disability pension appears to be set at around 60% of the National Minimum Wage perhaps signifying that Government considers them to deserve an inferior quality of life to abled persons ?
My QUESTION:
If 96% of the working population of GOZO ( roughly equivalent in number to the total of disabled in Malta + Gozo ) were UNEMPLOYED, would any incumbant National Administration stand any chance of re-election?
The time has come for those concerned about the disabled to insist by their vote that this Christian nation invests as necessary ( whether or not oil is found ) and makes significant moves towards the creation of a FAIRER SOCIETY...one in which work opportunities include the whole of the population such that wealth is likely to be better spread, albeit quite fairly on a meritorious basis rather than as a result of charity.
J Degabriele
Sep 6th 2012, 14:35
Where have we heard all this before?
Stephen Vella
Sep 6th 2012, 12:37
All these oil companies involved, from the exploration side and from the drilling side.... How are thet going to be paid? will they be taking a percentange of the oil money extracted? How much money will Malta get from this oil? It all depends how the contracts were made !!!
A 3 D survey will give you a clear answer of whether there is oil or not. I work in exploration
Mario Camilleri
Sep 6th 2012, 12:12
There's a song by Frank Sinatra called "My way" that goes like this:
And now, the end is near (election?)
And so I face the final curtain (JPO lest issa baqa Franco Debono)
My friends, I'll say it clear (m'hemmx flus u d-defisit mhux ser inrazznuh imma żgur li ż-żejt ser insibuh qabel l-elezzjoni!!)
I'll state my case, of which I'm certain (iġġudikawni fuq dak li nagħmel mhux fuq dak li ngħid)
I've lived a life that's full (saħansitra ħadna €500 żieda fil-ġimgħa kull wieħed flok €600)
I traveled each and ev'ry highway (anke għand Gaddafi morna qabel ħallina)
And more, much more than this, I did everything my way (avolja b'siġġu m'zappap u issa telaq JPO)
Regrets, I've had a few (żarmajt kumpaniji, għalaqt postijeit tax-xogħol, ħallast lil skansa u ma bnewlix dak li ridt, eċċ)
But then again, too few to mention (ivvotajt kontra r-roħs tal-kontijiet tad-dawl, sallabtkom bil-gass u l-fjuwil, il-ħajja għolja nfern eċċ)
I did what I had to do and saw it through without exemption (ivvotajt kontra dak li ried Franco u l-PL)
I planned each charted course, each careful step along the byway (aħna nagħmlu kollox bil-ħsieb J.S)
And more, much more than this, I did everything my way (Il-PN għandu rekord li jwasslu għal 30 sena oħra)
Qisu kien jaf Frank Sinatra f'hix kellu jasal dan il-pajjiż taħt GonziPn!!
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
Joe Portelli
Sep 6th 2012, 11:40
And to think of the many years of delayed benefits, as a direct result of the Libyan gun boats , an act of terrorism whilst MLP was not only in power, but having befriended the Gaddifi regime we lost all sympathy or freinds that could have come to our defend.
The situation is today slight different and let is ensure that we do not shoot ourselves in the foot again, and do what is really best for Malta and not just talk about it as MLP did at the time.
vella m
Sep 6th 2012, 15:49
@Joe Portelli,you are so right,I agree 100%.
Franco Abela
Sep 6th 2012, 11:37
I bet it will be just before the election
Amanda Scott
Sep 6th 2012, 11:37
I bet that the Nationalist party would want to get all the merit than?\ for signing a paper to give the green light for oil digging.
D. Xerri
Sep 6th 2012, 11:25
Its useless to find oil and have a total mismanagement in governance and in finances !
X`Jiswa li ssib iz-zejt meta min imexxi l-finanzi jberbaq u jahli - Malta min jibza ghall flus ghandha bzonn u jonfoq bil-qies u jkollu prijoritajiet tajbin !
william cauchi
Sep 6th 2012, 11:11
Two oil wells within 10 years?
What efficiency - what organisation. What was the Malta Resources authority doing for 10 whole years? Sorry to wake you up from your slumber.
80 kilometres north of Malta, Italy has found oil. 150 kilometres south of Malta Libya has found oil. 150 kilometres west of Malta Tunisia has found gas.
AAPG Bulettin reports '' Vega, the largest single oil field in the Mediterranean Sea, is located between the southeastern coast of Sicily and the Island of Malta.''
And in Malta.........................zzzzzzzzzzzzzzzzzz.
W Cassar
Sep 6th 2012, 11:30
Well said!
D. Xerri
Sep 6th 2012, 11:06
Let me see ...... ah ok GonziPN will come out yelling - There are big Chances of Malta finding oil - The Prospects are so Huge ....... just a few days before people go to vote the Momentum reaches so high GonziPN will then shout - Malta moments away from its oil :~) ........ The Flame on the Oil-Rig expected to light :~) - Millions of Oil Barrels in Maltese Waters :~) and bla bla bla ...... been there done that already P.N. Party !
Mr ALBERT LEONE GANADO
Sep 6th 2012, 11:03
Let us be positive. This is an oil company led by one of the world's leading experts on oil exploration who would not invest money if he did not feel there is good oil and gas potential. Why bring politics into the equation when perhaps this is one of those serenpiditous opportunities from which the whole country and population will eventually benefit whoever is eventually in government. Of course government will try to take advantage of this development and claim this as one of its projected objectives, as will no doubt the opposition spokesman Joe Mizzi who has been pushing a long time for more commitment to oil exploration. We the right minded public only care that if oil or gas is eventually found it will be used for the benefit of all the nation in a just and equitable manner by whoever will be at the helm. Let us not count the turtles before they are hatched but indications are that one can harbor the hope that a certain probability of eventually striking our own fossil energy source does exist.
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
Mario Tabone
Sep 6th 2012, 10:34
I just wonder........if for arguments sakes after the elections oil is actually found and we happen to have good old Joseph in the driving seat, will he and his cronies be taking credit for Malta finally striking oil ?
I know this drilling for oil saga has been going on for a long time but don't we realise the problems that have had to be overcome along the way ? The Labour Party made pacts with Libya during the Gaddafi years and we were forcibly prevented by the Libyan navy from carrying out exploration. Italy was not much help either. I suppose you cannot blame these oil producing countries because with the information already available to them they obviously know that the chances are that we could strike a main vein somewhere along the line.These things take time and for Malta's sake I hope we are successful but I would dearly love to see how all these bigots that keep calling the present government would react should our wish come true and we do strike oil !!!!!
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
Victor Pulis
Sep 6th 2012, 10:34
The driiling for oil has become the signal that an election is in the offing! Under both parties.
Ms Xaxa Caruana
Sep 6th 2012, 13:29
Very well said Mr.Pulis, same thought.
Ġ. Agius
Sep 6th 2012, 10:33
Just when you think that the PN government can't do anymore good for this country they come up with this flash of genius, a flash of genius which has the potential to make us world heavyweights. I wouldn't be surprised if a Maltese oil magnate buys an Italian football team in a few years time. He would make us proud.
A sincere well done to the PN.
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
Alex Falzon
Sep 6th 2012, 10:22
L-elezzjoni x'ghandu x'jaqsam... allura jekk isib iz-zejt il-PN ifisser illi trid tivvota lil PN bilfors??
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 Caruana Carabez
Sep 6th 2012, 10:17
I hope there is no oil! Nobody but the usual pigs whose snouts are always in the trough would benefit.
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.
Andrew Cilia
Sep 6th 2012, 10:10
Why is it that when I think of oil rigs, I think of elections (and the other way round for that matter)? It seems like we can't have the one without the other. Can't help feeling that the spin doctors just keep on prescribing the same old pacifiers.
Yawn.
W Cassar
Sep 6th 2012, 10:03
Yawn!
joe vella
Sep 6th 2012, 09:55
OH OH THE ELECTION IS NEAR!
Bis sahha ta Franco u Jeffrey se nsibu iz-zejt!
Halluna
Mark. Galea
Sep 6th 2012, 09:42
Jekk jinstab iz-zejt, ikun WARA l-elezzjoni ... jigri x'jigri ...
Mr Joe Cardona
Sep 6th 2012, 09:37
Kemm ser indumu nigbdu saqajn in-nies. Waslet l-elezzjoni. tidher hux Min se tahsbu se tidhku. Il-poplu m;ghadux tbellalu r-ross bil-labra. Jaf jizen u jaf min qed jipprova jghaddi z-zmien bih. Zgur li l-polu xeba b'dawn il-buzullotti.
N. Agius
Sep 6th 2012, 09:34
These kind of news confirm how close we are to the general one... it's always the same story .. in four years we barely heard such news. Sorry not this time..
silvano vassallo
Sep 6th 2012, 09:34
I hope it is a joke.
mark johnson
Sep 6th 2012, 10:22
No joke.
This is how JM will pay for cheaper fuel bills.
Spread the wealth around.
Please choose the reason of your report below: