The Cabinet has decided to establish a special legal framework to regulate the exploration and extraction of oil, gas and minerals within the maritime territory of the Maldives.
The President’s Office said the proposal was presented at a Cabinet meeting held yesterday by Fisheries, Agriculture and Ocean Resources Minister Ahmed Shiyam.
The Cabinet also decided that the Fisheries Ministry and relevant agencies should begin the necessary preparatory work for the exploration and extraction of non-living natural resources within Maldivian territory, as well as related activities.
A dedicated bill will also be drafted to regulate the sector. The legislation is expected to cover the granting of permits for the exploration and extraction of non-living marine resources, ownership of extracted resources, and the regulation, planning and management of related activities.
According to the President’s Office, the decision marks the beginning of legal and administrative work to identify the economic potential of resources within the Maldives’ maritime territory and determine how the country can benefit from them.
Earlier Oil Exploration
Oil exploration in the Maldives was previously pursued during the administration of former President Abdulla Yameen under an agreement with a foreign company.
Following a 2014 study conducted in the Maldives by scientists from the University of Hamburg in Germany, then Fisheries Minister Mohamed Shainee said geological surveys had detected evidence of “a fluid or gas” rising from beneath the seabed within Maldivian territory.
Shainee said at the time that earlier indications of possible oil deposits had been linked to the discovery of a freshwater aquifer beneath the seabed. He noted that biological materials associated with the formation of oil were present in the region.
However, Shainee said progress was hindered by a sharp decline in global oil prices, making it difficult to proceed to the next stage of exploration.
