State-owned Enemalta has sold off its profit-making Petroleum Division for around €83 million to two new government-owned companies in a deal which has been kept under wraps.

Petromal Company Ltd and Enemed Company Ltd, which were registered two weeks ago, have taken over the division, including its installations in Birzebbuga and Has Saptan.

Enemalta transferred the €83m to the government to settle part of the €150 million it owes the authorities in excise duties. That is expected to have a positive impact on the state of public finances as the government struggles to keep to its deficit targets.

In June, Times of Malta reported how the government was seeking strategic partners for the Petroleum Division, which was to be hived off from Enemalta before the conclusion of the agreement with Shanghai Electric. Enemalta will henceforth focus on the production and distribution of electricity.

The corporation's gas division was sold off to Liquigas some years ago.

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