Pancontinental and Sun Granted Interim Injunction Against Maltese Government
Australian exploration company Pancontinental Oil and Gas has said that it has been granted an interim injunction against the Maltese government to prevent it from granting licences to other companies in a disputed area.
The application was undertaken on behalf of a joint venture between Pancontinental and fellow Australian company Sun Resources. The injunction will serve until a hearing later this month to decide on the issue between the companies and the government.
Pancontinental and Sun maintain that an exploration study agreement (ESA) with the Maltese government has not expired, as the the government says, but that the ESA was suspended pending the ending of the event of force majeure which was the subject of a notice to the Government by the Joint Venture on 12 September 2005.
The force majeure relates to a border dispute with Libya which Pancontinental says is preventing the two companies from undertaking an extensive seismic programme.
The ESA, dating from 2001, covers Area 5 and Block 3 of Area 4 offshore Malta.
Pancontinental says that it was forced into action when the Maltese government, without warning, called for bids from companies for a portion of an area held by Pancontinental and Sun.
"The parties have been attempting to negotiate revisions to the ESA and at a meeting with representatives of the Government the Joint Venture thought that substantial progress toward a resolution was made," a statement from Pancontinental said. "However, notwithstanding the state of those negotiations and the Joint Venture’s position that the ESA is still in force, the Government, without any warning to the Joint Venture, has called for bids from interested companies for the grant of petroleum rights over certain offshore areas, a portion of which includes an area that is the subject of the ESA."
Pancontinental says that the government then refused to meet it and Sun to discuss the matter.
"Pancontinental and Sun remain steadfastly resolved to retain their rights under the ESA and to recommence oil and gas exploration for the benefit of both Malta and their shareholders as soon as possible," Pancontinental said today.