The European Commission is not in a position to comment on whether the government-to-government €83 million sale of Enemalta's petroleum division amounts to state aid.

Questions have been raised over the sale of the profit-making division as it bypasses a tender awarded by the previous administration to a Lebanese company for the division's privatisation.

The division was sold to Petromal Co Ltd and Enemed Co Ltd - both owned by Malta Government Investments.

The two companies, which were only set up a fortnight ago, now own the division, including its installations in Birzebbuga and Has-Saptan. According to reports, the sale was made so that Enemalta could pay part of the €150 million it owes to the government in excise taxes.

However, sources pointed out that the previous administration had bound itself to sell the Petroleum Division to BB Energy back in 2008. The Lebanese company was announced as the preferred bidder six years ago. In 2011, it was reported that the privatisation process was in its final stages. The process was later stalled because of environmental planning issues, and an alternative site to the Birzebbuga tanks could not be found at the time.

A source close to the privatisation process confirmed that neither administration has ever announced the cancellation of the BB Energy tender. Besides, any tender launched by a previous administration has to be honoured by a successive government.

The source asked; "Does this mean that the agreement is still valid? Has the government breached tender conditions by selling the Petroleum Division to itself? Or has it reached some sort of undisclosed agreement with the Lebanese company? If yes, has the government paid some sort of compensation?"

Another source explained that the government could always change its mind but at least it would have a duty to inform the bidding company. The bidder would also have the option to take the government to court. The government has repeatedly hinted that it will start the privatisation process anew, hinting that the BB Energy tender is dead and gone.

When contacted this week, Adrian Said, chairman of Malta Government Investments, said he was not in a position to comment on the media reports since he was abroad. Mr Said asked us to send questions by email but said the actual decision to buy the Petroleum Division would have been taken by the respective boards of Enemed and Petromal.

Petroleum division employees to keep their jobs - Ministry

All employees of the petroleum division have been transferred to the new companies, an Energy Minster spokesman told our sister paper The Malta Independent.

According to the spokesman, the sale of the division along with the €320 million that are to be invested in Enemalta "is in line with the government's aim to maximise the commercial potential of its underutilised assets and resources".

The employees of the Petroleum Division, who were on Enemalta's books, were transferred to a new company, Engineering Resources Ltd, along with all other Enemalta employees. "They are now seconded with Enemed and none of them will be made redundant."