Earlier this year, Malta announced a far-reaching energy plan that aimed to reduce local spending and revive the country’s offshore aspirations after more than a decade of inactivity. In addition to building a local power station and a pledge to reduce utility costs by 25 percent, the plan set out to entice international firms to drill in Maltese waters, easing the country’s complete and total dependence on imports. As we mentioned when the plan was unveiled, there was not much to be excited about considering the country’s rather dismal track record when it came to exploiting its hydrocarbon potential. After all, the county has produced just 12 wells since spudding its first over 50 years ago and has not one of these has come since 2002. During this same period, Italy produced about 7,000 wells. However, after talks this week, it appears that Italy may provide more than just a goal to shoot for in the Mediterranean - it could end up being Malta’s offshore partner. Maltese Prime Minister Joseph Muscat told reporters this week that the two countries had made great progress towards establishing a joint approach for oil exploration. The announcement not only signals the Maltese government’s willingness to move forward on a pledge to revive its offshore program, but also move beyond a long-standing maritime dispute with Italy. According to local media reports, the Italian dispute centers around the Medina Bank, which Malta argues is part of the country’s continental shelf. A joint effort with Italy would allow Malta to address earlier criteria that offshore activity involve all countries who have maritime claims in the area.
Reported by Forbes.com 3 days ago.
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