L-Istat prezenti ta' l-Esplorazjoni taz-Zejt f'Kercem

L-Istat Prezenti tal-Esplorazjoni taz-Zejt f’Kercem

Il-Prim Ministru llum irðieva numru ta’ talbiet góal kummenti dwar il-pozizzjoni attwali tal-proíett ghat-tiftiex góaú-úejt f’Kercem, Góawdex.

Id-dokument hawn anness jagóti d-dettalji kollha dwar ir-tóaffir f’Kercem. Dan is-sit góat-tóaffir kien íie identifikat fl-1998 u l-ewwel bir esploratorju (Kercem 1) kien imóaffer fl-1991.

Aktar informazzjoni fuq is-sit sar magóruf dik is-sena stess u wara studju estensiv ta’ l-informazzjoni miksuba bejn l-1992 u l-1994 kienet ittieódet deðizjoni biex ikun finanzjat it-tieni bir ‘Kercem 2’. Il-finanzjament kien íie approvat mill-Gvern Taljan fl-1997 u t-tóaffir beda fl-1998 wara li ‘Kercem 2’ ngóata l-isem ta’ ‘Madonna taú-Úejt’. Bituminous shows nstabu f’fond ta’ bejn wieóed u ieóor 2000 metru.

Il-prezenza ta’ shows f’bir ma tfissirx li jkun instab iú-úejt. Hu rilevanti li wieóed ikun jaf li shows taú-úejt kienu instabu fi bjar oóra Maltin bóal

f’MSA 1, f’Home 1, u f’Alexia 2, bjar li ma rrendewx úejt.

Dr Fenech Adami kien qal nhar it-22 ta’ Awissu 1998, meta l-bir kien tóaffer sa 4000 metru - illi ma kienx instab úejt, góalkemm il-Gvern Laburista ta’ dak in-nhar kien qed japprova jagóti din l-impressjoni matul il-kampanja elettorali. Dak li ntqal dak in-nhar góadu jgóodd illum meta l-bir hu móaffer sa’ 5180 metru.

Góalkemm aóna lkoll nittamaw illi dan il-proíett ikun ta’ suððess, rridu l-ewwel nistennew li jitlesta t-tóaffir.

Current Status of Oil Exploration at Kercem

The Prime Minister today received a number of requests for comments concerning the current status of the oil exploration project at Kercem in Gozo.

The attached document gives the full details of drilling at Kercem. The site had been identified in 1988 and the first exploratory well (Kercem 1) was drilled in 1991.

Further data on the site was acquired that same year and following extensive studies of the data coming out between 1992 and 1994 a decision was taken to request financing of a second well (Kercem 2). The financing was approved by the Italian Government in 1997 and drilling started in 1998 following the renaming of ‘Kercem 2’ as ‘Madonna taz-Zejt’. Bituminous shows were encountered at a depth of about 2000m.

The mere presence of shows in a well does not mean oil has been found. It is relevant to point out that oil shows were encountered in other Maltese wells such as

MSA 1 , Home 1 and Alexia 2, all of which eventually turned out to be dry.

Dr Fenech Adami had stated on 23 August 1998 - when the well was at about 4000m - that oil had not been found (although the then Labour Government was trying to give this impression during the election campaign). This still applies today when the well is at 5180m. Whilst we all hope that this project will be successful we must await completion of drilling.

Gozo Stratigraphic Well - Project History

1. A feasibility study to assess the potential of onshore petroleum exploration in the Maltese Islands was prepared in July 1988. The report, entitled "Onshore Exploration in the Maltese Islands - a proposed feasibility study", recommended the drilling of a well on the island of Gozo to determine whether the oil producing basin of offshore SE Sicily extends as far south as the Maltese Islands.

1. At the request of the Government, an expert from the Commonwealth Secretariat visited Malta in June 1990 to evaluate further the possibility of drilling the well onshore Gozo on the basis of the geology of the region and a gravity anomaly associated with the island. In his report entitled "Geological Appraisal of the Petroleum Potential of Malta", the expert recommended further acquisition of data before committing to an onshore well.

1. An attempt to drill a shallow well "Kercem 1" to obtain additional information on the stratigraphy of Gozo was made in 1991 utilizing a water rig of the Water Works Department. The rig could only reach about 550 m of the projected depth of 1000 m and was of very limited value.

1. Another expert from the Commonwealth Secretariat visited Malta in April 1994, at the request of the Government to review the project in the light of new data acquired around Gozo in 1991 by Amoco/ BHP in connection with a licence in Blocks 2 & 3. In his report entitled "Petroleum Exploration in Malta with special reference to Gozo area", the expert was in favour of the proposed well onshore Gozo and recommended the drilling of Kercem 2.

1. A formal request to include the project for possible funding under the provisions of the Protocol was submitted by the Office of the Prime Minister to the Ministry of Finance in July 1994.

1. The project was accordingly included in the Business & Financial Plan of the Oil Exploration Department for 1995 to 1997 on condition that it could be financed out of the Italo-Maltese Protocol for Technical and Financial Cooperation.

1. In 1995, a number of major drilling companies with experience in the Central Mediterranean were requested to submit quotations for the drilling of the well. The proposals submitted were analysed by a drilling expert from the Commonwealth Secretariat who visited Malta at the request of the Government in November 1995.

1. The Oil Exploration Department submitted the project document to the Ministry of Finance in May 1996. Following clarifications, it was submitted to the Italian Government in November 1996.

1. The project was discussed with the Italian authorities in March 1997 at a meeting at the Auberge de Castille. The Italian authorities were supportive of the project and it was agreed that the process of securing an Italian drilling contractor could commence.

1. Five major Italian drilling companies were requested to submit quotations for the drilling of the well in April 1997 and to ensure wider publicity adverts were placed in 5 major Italian newspapers in June 1997. (Il Messaggero, Il Corriere Della Sera, La Stampa, Giornale di Sicilia and Il Sole 24 Ore).

1. By August 1997, three valid quotations were received, from SAIPEM SpA, Schlumberger Italiana SpA and Dive Master Europa srl.

1. On 29 August 1997, the most advantageous offer, that of SAIPEM SpA, was accepted by the Government. A Memorandum of Understanding was signed with the company on 18 September 1997.

1. In the course of the budget debate in November 1997, the Government announced that a well was to be drilled in Gozo. A Press Release was also issued on 16 November 1997 indicating that the name of the Kercem 2 well was now to be "Madonna taz-Zejt".

1. The contract with SAIPEM was signed on 19 November 1997.

1. On 2 December 1997, a formal application (no. 6889/97) for a Full Development Permission to drill the well was filed with the Planning Authority in accordance with the Development Planning Act (1992). The PA held a Public Hearing on 26 February 1998 to discuss the application to drill the well. The application was approved and a permit was issued on 27 February 1998.

1. Civil engineering works on site started in March 1998 and were completed in April. Mobilisation of equipment followed in May and was completed in mid June 1998.

1. The well was spudded on 18 June 1998.

1. On 28 July 1998, bituminous shows were encountered at a depth of about 2000m.

1. Analyses of the bituminous shows were carried out independently by AGIP and Robertson Research International Ltd. The results, particularly those of Robertson, would suggest that the shows are derived from a mature source consistent with that found in SE Sicily.

1. The well is currently drilling ahead at 5180 m. No accumulations of oil have yet been encountered. Potential reservoirs could lie at depths significantly deeper than the original projections, between 5000 m and 7000 m.

24.09.98