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MALTA


CAPITAL: Valletta

MONETARY UNIT: Pound

REFINING CAPACITY: 0

OIL PRODUCTION: 0

OIL RESERVES: 0

GAS RESERVES: 0

Italy`s Agip signed an agreement with Malta to survey 9,000 sq km off the island`s north coast for potential oil and gas reserves.

Agip will conduct seismic work for the area, adjacent to oil fields being operated off the south coast of Sicily. It said the survey might lead to joint exploration in the area if the Maltese government agrees.

The government, hoping for oil production, relaxed its licensing terms. It revised its model production sharing contract to lower the income tax to 35% from 50% and boost the share of net annual production availabale for cost recovery to 75%.

For several years, Malta sought its first oil production. The island lies on a trend between the two largest producing fields in the Mediterranean: Sicily`s Vega field and Libya`s Bouri field.

Several international oil companies have drilled wildcats on acreage around Malta, but none have announced discoveries.

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