Malta: Pancontinental and Sun Resources Injunction Denied

A Maltese court has rejected an application brought by Pancontinental Oil & Gas and Sun Resources against the Maltese government. The two companies had applied for the injunction to deny the government the opportunity to open bids on offshore blocks that Pancontinental and Sun said it still had the rights over.

Pancontinental and Sun had argued that an exploration study agreement (ESA) with Malta had not expired due to a border dispute with Libya that prevented the companies from undertaking seismic evaluations on the licensed areas.

The joint venture of companies said it was forced to take action when the Maltese government, without warning, opened bidding for a number of offshore areas, including Area 5 and Block 3 of Area 4, despite being in negotiations with the two companies at the time.

Sun and Pancontinental were in discussion with the Maltese government at the time the bidding was opened, the companies say, and had not been told of the move.

The joint venture had held the licence for Area 5 and Block 3 since 2001. They were forced to forego an extensive seismic programme due to a force majeure relating to a border dispute with Libya.

A Maltese court denied the injunction. Pancontinental and Sun Resources will now review the decision to see what, if any action, the companies take.