The Mediterranean island nation of Malta and North Africa’s Libya have signed a MoU for the supply of oil products. The announcement of the MoU came during a joint press conference between Maltese prime minister Joseph Muscat and his Libyan counterpart Ali Zidan.
Malta said in a statement “the relationship between Malta and Libya took a quantum leap with the signing of the memorandum of understanding, which is crucial and beneficial for both countries.”
Under the MoU Libya will supply Malta with an undisclosed amount of oil products, including processed and crude oil, diesel, petrol, jet fuel, and LPG. The deal offers Malta the oil products under favorable terms and conditions.
The agreement between the two cannot be implemented immediately however as Libya’s production and export levels are at an all time low due to protests in the country. The deal will push forward as soon as production returns to normal.
“This is a very concrete measure by which this government will make sure that Enemalta [the Maltese utility provider] is on a sound footing and will help shield Maltese consumers and industries from excessive fluctuations in the world market. It will help us stabilize the price of fuel for the benefit of our economy and of our families.
This is a ground breaking MoU on which puts forward a number of key agreements which the details will be discussed in the next Joint Commission Meeting in Tripoli,” prime minister Muscat said.
The agreement also specifies that in the medium to the long term Malta becomes a center from which Libya can service Europe in the energy sector. “The Maltese government is resetting the policy objectives of our country.”
The prime minster said that “now that the interconnector is in place Malta looks forward to become a juncture to the south whereby it can become an energy hub from which Libya can supply energy to Europe.”
“Another important step forward is the agreement to consider joint activity to exploring the potential for oil and gas in disputed areas between our two countries. This goes also hand in hand with an initiative with our Italian partners in the northern part of our territory,” Muscat said.
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