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NEW OIL EXPLORATION AGREEMENT BETWEEN GOVERNMENT AND CONSORTIUM LED BY AUSTRALIAN COMPANY
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26/07/2001
26/07/2001
| An oil exploration agreement was signed between the Government and a | consortium led by Pancontinental Oil and Gas NL of Australia. The Managing Director of Pancontinental signed on behalf of the consortium whereas the Director of the Oil Exploration Department in the Office of the Prime Minister signed on behalf of Government. |
| The Agreement covers offshore acreage in Area 5 and | Block 3 of Area 4 to the south and south-west of Malta and includes the area where an exploratory well was drilled by Amoco in 1993. The area of interest lies close to the well and is only about 120 kilometres away from the nearest producing Bouri oilfield in offshore NW Libya. A recent seismic survey in the area has demonstrated the presence of prospective structures which the joint venture is prepared to explore further. |
| The Agreement calls for the undertaking of geological | and geophysical work during an initial 18 month term and the potential drilling of a well during a subsequent optional phase covered by a pre-negotiated Production Sharing Contract. The group is also bound to pay contributions to Government in the form of administration fees, rentals, training obligations and bonuses. |
| Pancontinental Oil & Gas NL is an Australian | listed international petroleum exploration company with exploration rights in Australia, the Philippines and New Zealand. The group is seeking to increase its exploration portfolio and is especially attracted to the peripheries of the African continent, both because of perceived high prospectivity and because the existing presence of other associated mineral companies provide an infrastructure and knowledge base for such involvement. The joint venture will review the existing data in the area and will undertake further geophysical programs to define better the prospects and identify drilling targets. |
| The award of the Agreement followed technical presentations by | Government at international oil conferences and lengthy discussions with four groups of companies that expressed interest in the licence area. More discussions with other oil companies are underway and further exploration agreements may be concluded in the near future. This licensing activity forms part of Government’s policy to attract exploration activities in offshore Malta. |
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