The government has decided to introduce a legal framework for the exploration and extraction of oil, gas, minerals and other non-living resources found within the Maldives’ maritime zones.
The decision was made by the Cabinet on Sunday following a paper submitted by Fisheries, Agriculture and Ocean Resources Minister Ahmed Shiyam.
The relevant ministry will work with other government authorities to develop rules covering exploration, extraction and related activities. A new bill will also be drafted to regulate permits, ownership of extracted resources and the management of the sector.
The President’s Office said the initiative will allow the government to assess the economic potential of the country’s maritime areas while ensuring any resources discovered are managed responsibly and their benefits are secured for the nation.
The move follows President Dr Mohamed Muizzu’s announcement in March that the government had begun a feasibility study for establishing a national strategic oil reserve within five years.
The proposed reserve is expected to be developed in three phases, with each phase estimated to require up to USD 150 million.
The Maldives currently relies heavily on imported fuel. The Environment Ministry reported in May that fuel import costs had risen by 110 percent amid conflicts in the Middle East, with monthly spending reaching around USD 116 million.
