FrodoLives
14-12-2007, 01:40 PM
A Maltese subsidiary of a Canadian company will be responsible for oil and gas exploration and exploitation in two offshore areas after reaching an agreement with the Government.
The two areas, known as Areas 2 and 7, cover an area of 18,000 square kilometers and are located to the south and south-east of Malta.
Heritage Oil International Malta -- a subsidiary of Calgary-based Heritage Corporation, which is already operating in Russia, Uganda and Iraq amongst others -- will focus on carrying out a detailed seismic survey and drilling at least one exploration well in the first three years of the programme, which is spread over a 30-year contract.
Should oil or gas be discovered in commercial quantities, the company will retain part of production to recover costs, while the remainder will be shared with the Government according to a pre-agreed scale. The company’s profit will be taxable with a 35 per cent tax rate.
Under the agreement, the company is bound to spend at least $22million in the first three years of the contract and pay the Government a $2million as a signature bonus.
The company also has to pay the Government annual rentals on rising scale -- starting from $240,000 -- and make a yearly $100,000 contribution for scholarships and training.
The areas that were handed over to the Canadian company were previously held by Norwegian company TGS Nopec.
Well, here we go again. What you think?
The two areas, known as Areas 2 and 7, cover an area of 18,000 square kilometers and are located to the south and south-east of Malta.
Heritage Oil International Malta -- a subsidiary of Calgary-based Heritage Corporation, which is already operating in Russia, Uganda and Iraq amongst others -- will focus on carrying out a detailed seismic survey and drilling at least one exploration well in the first three years of the programme, which is spread over a 30-year contract.
Should oil or gas be discovered in commercial quantities, the company will retain part of production to recover costs, while the remainder will be shared with the Government according to a pre-agreed scale. The company’s profit will be taxable with a 35 per cent tax rate.
Under the agreement, the company is bound to spend at least $22million in the first three years of the contract and pay the Government a $2million as a signature bonus.
The company also has to pay the Government annual rentals on rising scale -- starting from $240,000 -- and make a yearly $100,000 contribution for scholarships and training.
The areas that were handed over to the Canadian company were previously held by Norwegian company TGS Nopec.
Well, here we go again. What you think?