                      PETROLEUM (PRODUCTION)               ġ CAP. 156.         1
CHAPTER 156
 PETROLEUM (PRODUCTION) ACT
To vest in the Government of Malta the property in petroleum and
natural gas within Malta and to make provision with respect to the
searching and boring for and getting of petroleum and natural gas, and for
purposes connected with the matters aforesaid.
8th March, 1958
ACT IV of 1958, as amended by Emergency Ordinance VI of 1958;
Ordinances: VI of 1959, XXV of 1962; Act XV of 1965; Legal Notice 46 of
1965; Acts: XXXV of 1966, XX of 1969, LVIII of 1974 and XIII of 1983.
Short title.
Act. 
Interpretation. 
Amended by: 
XV.1965.2; 
XXXV. 1966.10;
XXV. 2000.36.
2. In this Act unless the context otherwise requires - 
"licence" means a licence granted pursuant to this Act and
includes a petroleum mining concession;
"Malta" means the Island of Malta, the Island of Gozo, the other
islands of the Maltese Archipelago, and the land underlying
territorial waters;
"Minister" means the Prime Minister of Malta and includes such
other Minister, public officer or authority as may be authorised by
him from time to time for any of the purposes of this Act;
"petroleum" means all natural hydrocarbons liquid or gaseous
including crude oil, natural gas, asphalt, ozokerite and cognate
substances and natural gasoline.
Vesting of property 
in petroleum in 
Government of 
Malta. 
Amended by: 
VI. 1958.2; 
XXV.1962.2,5; 
XV.1965.3; 
XIII.1983.5;
XXV. 2000.36.
Cap. 9.
3. (1) The property in any petroleum in its natural condition
in strata wheresoever existing in Malta is hereby vested in the
Government of Malta and the right of searching and boring for and
getting such petroleum shall be subject to a licence granted under
the provisions of this Act.
(2) Any person, who, without a licence granted under this Act
searches or bores for or gets petroleum on, under or from any lands
in Malta shall be guilty by reason merely of having done so and
without prejudice to prosecution under any other provision of law,
of an offence and shall be liable on conviction to a fine ( multa ) of
not less than two hundred liri but not exceeding five hundred liri
for each day during which the offence continues, which fine
( multa ) shall also be applicable for the purposes of article 377(3) of
the Criminal Code and in addition all petroleum so gotten shall be
forfeited to the Government of Malta. Nothing in this Act, however
shall be construed as imposing any penalty on any person where in
the course of lawful boring in search of water or of other lawful
operations, petroleum is set free.
  2       CAP. 156. ħ                PETROLEUM (PRODUCTION) 
Cap. 16.
(3) The prohibitions imposed by or under this Act and the
rights by and under this Act vested in the Government of Malta, in
the Minister, in any officer of the Government, and in any holder of
a licence under this Act shall have full effect notwithstanding the
provisions contained in article 323 of the Civil Code or in any law
which may be incompatible with such prohibitions and rights:
  Provided that nothing in this Act shall be construed as
conferring, or as enabling the Minister to confer, on any person,
whether acting on behalf of the Government of Malta or not, any
right which he does not enjoy apart from this Act, to enter on or
interfere with land.
Licences to search 
for and get petro-
leum. 
Amended by: 
VI. 1958.2; 
XXV. 1962.2,5; 
XV. 1965.4;
XXV. 2000.36.
4. (1) The Minister shall have the power to grant to the
successful applicant, a licence to search and bore for and get
petroleum on, under or from any lands in Malta including
petroleum mining concessions.
(2) Any such licence shall be granted for such consideration
(by way of royalty and/or otherwise) as the Minister may
determine, and over such areas, for such periods and upon such
other terms and conditions as may be stipulated in the call for
applications.
(3) Without prejudice to the generality of the last preceding
subsection, the terms and conditions of any such licence may in
particular include provision for the following matters:
(i) the rates of royalties to be paid in respect of any
petroleum won in the exercise of the rights
conferred by the licence, the method of
calculation of the amount of such royalties and
the manner of payment thereof;
(ii) the surface rents to be charged in respect of the
areas of the licence;
(iii) the working obligations attaching to the licence; 
(iv) the division between the Government of Malta
and the licensee of profits derived from the sale
or disposal of petroleum won in the exercise of
the rights conferred by the licence;
(v) the supply from time to time of information by
way of returns, reports, notices, records of
operations or otherwise;
(vi) such other terms and conditions as may be
specified in the call for applications.
(4) The Minister shall as soon as may be after granting a
licence under this section, cause a notice of the fact to be published
in the Government Gazette, and in any such other manner as may
be required under international obligations entered into by the
Government, stating the name of the licensee and the situation of
the area in respect of which the licence has been granted.
(5) The public call for applications referred to in this article
shall be published in the Government Gazette and in any such other
manner as may be prescribed, at least ninety days prior to the
                      PETROLEUM (PRODUCTION)               ġ CAP. 156.         3
closing date for such applications.
(6) The issue of the call for applications and the granting of a
licence under this article shall also be subject to the following
criteria:
( a ) the technical and financial capability of an applicant;
( b ) the manner in which an applicant proposes to prospect,
explore or to bring into production the geographical
area which is the subject of the call for applications;
and
( c ) economic and financial considerations.
(7) The issue of a public call for applications and the granting
of a licence under this Act shall comply to any provision of law
regulating procurement and competition rules which may from time
to time be in force.
Power to make 
regulations. 
Amended by: 
VI.1958.2; 
XXV.1962.2; 
XV.1965.5; 
L.N. 46 of 1965; 
XX.1969.2; 
XIII.1983.5;
XXV. 2000.36.
5. (1) Subject to the provisions of this Act and to any
international obligation entered into by Government, the Minister
may make regulations generally for regulating the exploration,
prospecting and mining for petroleum in Malta, including the
drilling for and production of petroleum and the conservation of the
petroleum resources of Malta, and for carrying out any of the
provisions of this Act, and in particular, but without prejudice to
the generality of the foregoing, such regulations may prescribe - 
( a ) the manner in which and the persons by whom
applications for licences under this Act may be made;
( b ) the fees to be paid on any such application;
( c ) the conditions as to the size and shape of areas in
respect of which licences may be granted;
( d ) model clauses which shall, unless the Minister thinks
fit to modify or exclude in any particular case, be
incorporated in any such licence,
( e ) anything which is required or may be prescribed under
this Act,
Cap. 9.
and may provide for establishing the penalties for the breach of any
of their provisions, which penalties may include a fine ( multa  or
ammenda ) not exceeding one thousand liri or in the case of a
continuing offence not exceeding five hundred liri for each day
during which the offence continues; and different regulations may
be made for different kinds of licence. Any penalty established by
the regulations in respect of a continuing offence shall be
applicable also for the purposes of article 377(3) of the Criminal
Code.
(2) Any regulations made under this section shall be laid before
the House of Representatives as soon as may be after they are
made, and if the House of Representatives, within the next twenty-
eight days after any such regulations are laid before it, resolves that
the regulations shall be annulled, the regulations shall thenceforth
be void, but without prejudice to anything previously done
thereunder or to the making of new regulations:
  4       CAP. 156. ħ                PETROLEUM (PRODUCTION) 
  Provided that there shall not be included in the computation of
the said twenty-eight days any period of eight or more consecutive
days intervening between any two consecutive sittings of the House
of Representatives.
Acquisition of 
land. 
Amended by: 
VI.1959.3; 
L.N. 46 of 1965; 
LVIII.1974.68.
Cap. 88.
6. (1) Any person to whom a licence is granted under this Act
may apply to the President of Malta for permission to examine any
specified area of land with a view to its possible acquisition on
behalf and for the use of such applicant and if in the opinion of the
President of Malta the examination of such land with a view to its
possible acquisition is necessary to enable the applicant to exploit
the licence or to exploit it fully, the President of Malta may declare
it desirable that the land should be examined. When a declaration is
so made the Accountant General may grant, under section 8(1) of
the Land Acquisition (Public Purposes) Ordinance or any other law
amending or substituted for that subsection, such authorisation as
may reasonably be required by the applicant.
(2) If, as a result of any such examination as is mentioned in
the foregoing paragraph, it shall appear to him desirable that such
land should be acquired on behalf or for the use of the applicant,
the President of Malta may declare that the land is required for a
public purpose within the meaning of the Land Acquisition (Public
Purposes) Ordinance or of any law amending or substituted for that
Ordinance, and when a declaration is so made the Accountant
General may in due course proceed to acquire the land under the
provisions of that Ordinance or of any other law as aforesaid.
(3) Before authorisation of examination is granted and before
land is acquired on behalf or for the use of any person under the
provisions of this section, the Accountant General shall require
such person to enter into an agreement with him providing to the
satisfaction of the Accountant General for the following matters,
namely:
( a ) the payment to the Accountant General of the cost of
the acquisition including all incidental expenses and
the deposit with the Accountant General of any sum
fixed by the Accountant General on account of the
payment so to be made;
( b ) the transfer, on such payment, of the land to such
person; 
( c ) the terms on which the land shall be held by such
person; 
( d ) when the acquisition is required for the construction of
any work or works, the time within which and the
conditions subject to which the work or works shall be
initiated, executed and maintained, and the terms (if
any) on which the public shall be entitled to use or to
acquire the work or works; and
( e ) in any case where anything has been done or may be
done under the provisions of of section 8(1) of the
Land Acquisition (Public Purposes) Ordinance or
under any provision of law amending or substituted for
                      PETROLEUM (PRODUCTION)               ġ CAP. 156.         5
that subsection, by or on behalf of the Accountant
General, the payment to the Accountant General of all
damages, to be assessed in accordance with the
provisions of subsection (2) of that section.
(4) Words and phrases used in this section shall, unless the
context otherwise requires, have the same meaning as in the Land
Acquisition (Public Purposes) Ordinance or in any law amending or
substituted for that Ordinance.
