This afternoon, offshore Area 5, located approximately 70 km to the southwest of Malta and totalling approximately 8,700 square kilometres, was awarded by the Government of Malta to the oil company Ratio Malta Limited, under an Exploration Study Agreement.  

The company is an affiliate of Ratio Oil Exploration Limited, an oil and gas company, based in Tel Aviv, Israel. Ratio Oil Exploration Limited has operations in Israel which include the offshore Leviathan gas field, the largest gas discovery in the Mediterranean ever.

Minister for Transport and Infrastructure Joe Mizzi signed the agreement on behalf of the Maltese Government. 

The Exploration Study Agreement has a duration of two years and the work obligations are focussed on part of Area 5 with a minimum exploration expenditure of U$ 1.5 million. During the first year, the work obligations mainly consist in the reprocessing and interpretation of existing data and the compilation of all available data in a geographical information system. During the second year, the work obligations will consist in the acquisition of a minimum of 1,200 km of 2D seismic data and the acquisition of gravity and magnetic data.

Technical studies will be conducted to integrate the reprocessed data and the acquired data, as well as geological data and to map prospects in the area. Ratio Malta Limited may opt to extend the agreement by an additional year if the company undertakes to acquire a 3D seismic survey.

The agreement also contemplates that technical meetings are held between the Government and Ratio Malta Limited in order to review and discuss interim results. The agreement is governed by Maltese Law.