The Maldives has officially begun work towards establishing a dedicated legal framework for the exploration and extraction of oil, gas, minerals and other non-living natural resources within the country’s maritime territory.
The Cabinet approved the move at its meeting on Sunday following a proposal submitted by Fisheries, Agriculture and Ocean Resources Minister Ahmed Shiyam, the President’s Office said.
Exploration process to begin
Under the Cabinet decision, the Ministry of Fisheries, Agriculture and Ocean Resources will coordinate with relevant state authorities to begin the procedures necessary for exploring and potentially extracting non-living natural resources.
The initiative will also cover activities associated with the development of such resources.
Dedicated legislation planned
The government will draft a separate bill to establish rules governing the emerging sector.
The proposed legislation will address authorization for exploration and extraction, ownership of discovered resources, and mechanisms for regulating and managing the industry.
According to the President’s Office, the Cabinet decision marks the formal beginning of legal and administrative efforts to determine the economic potential of resources within the Maldives’ maritime area and ensure that any benefits generated from them are secured for the country.
The initiative could open a new area of economic opportunity for the Maldives if commercially viable resources are identified through future exploration.
