Fossil fuel logistics company Medserv yesterday committed itself to its base in Malta until 2060, with the Government extending its lease agreement by a further 15 years.

In return, the firm will invest €10 million in its infrastructure over the next decade and almost double the workforce from 50 to 90.

It will also pay €430,000 a year to the Malta Freeport Corporation, with the amount rising incrementally every five years.

Medserv chairman Anthony Diacono said the company was committed to keeping Malta as its base.

“This lease extension reflects our commitment to the country and our optimism concerning fossil fuel prospects in the Mediterranean. The region is becoming very interesting in this respect, with big finds in Israel and Cyprus.”

Discoveries of new reserves in this part of the Mediterranean have prompted Medserv to open a Cypriot branch to accompany the firm’s other overseas base in Misurata, Libya.

Long-term agreements are fairly standard in the fossil fuel trade, which is typified by substantial research and investment commitments and several years of subsequent drilling.

Mr Diacono said any eventual fossil fuel discoveries within Maltese territorial seas would be a significant boon to companies such as theirs. “It would, of course, be excellent news but I have no idea what stage drilling licences or prospects are at,” he said.

Infrastructure Minister Austin Gatt was present for the signing of the lease extension by Mr Diacono and Freeport Corporation chairman Mark Portelli.

He described the company as a success story and praised it for its willingness to expand.

“We will help those willing to take a risk. Medserv’s commitment to invest further is a vote of confidence in Malta’s industrial policy,” he said.