Hopes of an oil deal with Libya by end of the year

The Government is hoping to conclude talks on a preferential oil supply deal with Libya by the end of the year, The Sunday Times of Malta has learnt. An understanding was reached on a deal that could see Malta receiving oil shipments at a fixed price from Libya during a meeting between Prime Minister Joseph Muscat and his Libyan counterpart Ali Zeidan in Tripoli last month. “There is a political agreement but we are still negotiating the details,” a government source told this newspaper. Over the past few weeks, the tempo of discussions was hampered somewhat by continued instability in Libya and the Ramadan but sources said the Government was hopeful a deal could be reached by the end of the year. Libyan sources said the Tripoli government was struggling on a number of fronts, not least the oil sector itself, where it has faced criticism related to the low production of oil. “But the commitment has been made and they (the Libyan government) will make good on their word. Malta has assumed renewed importance for the Libyan government at this critical juncture, partly on the basis of its role during the revolution and partly because of the help the country needs from Europe on many...