Maldives to establish legal framework for oil, gas and mineral exploration

The Cabinet has decided to establish a dedicated legal framework to govern the exploration and extraction of oil, gas, minerals, and other non-living marine natural resources within the Maldives’ maritime zones.

According to the President’s Office, the decision was reached during the Cabinet meeting held on Sunday, following deliberations paper submitted by Minister of Fisheries, Agriculture and Ocean Resources Ahmed Shiyam.

As part of the decision, the Ministry of Fisheries, Agriculture and Ocean Resources, in coordination with relevant authorities, will undertake the necessary measures concerning the exploration, extraction, and related activities involving non-living natural resources within Maldivian maritime zones.

The Cabinet also resolved to draft a special bill governing the issuance of permits for the exploration and extraction of non-living marine natural resources, determining ownership of extracted resources, and establishing mechanisms for the effective regulation and management of the sector.

The President’s Office states this marks the beginning of a legal and administrative process to assess the economic potential of the Maldives’ maritime zones and establish a regulatory framework to ensure that any resources identified are responsibly managed and that their benefits are secured for the nation.                

Notably, President Dr. Mohamed Muizzu announced in March that the government had initiated a feasibility study into establishing a national strategic oil reserve within the next five years as part of its long-term economic vision.

The President stressed that the establishment of an oil reserve is as important as the creation of the Sovereign Development Fund, noting that such a reserve could deliver significant long-term benefits while strengthening the Maldives’ energy security.

The initiative is expected to be implemented in three phases, with each phase requiring a maximum estimated budget allocation of USD 150 million.

The Maldives remains heavily reliant on imported fuel. In May, the Environment Ministry reported that oil import costs had increased by 110 percent due to conflicts in the Middle East, with monthly expenditure currently reaching approximately USD 116 million.