Tag: drilling

Oil drilling and Maldives’ tourism “cannot coexist”, says NGO Bluepeace

Oil drilling and sea-based tourism “cannot coexist”, says Executive Director of local NGO Bluepeace Ali Rilwan, who has suggested that drilling for oil will create a number of problems.

Rilwan’s comments follow further confirmation this week from President Abdulla Yameen that that the government will commence work on locating crude oil in the Maldives.

According to local news outlet CNM, Yameen said that if the government is indeed successful in finding oil in the Maldives, the outlook for the entire country would change for the better.

These statements were made at a land reclamation ceremony held on Sunday (March 16) on the island of Meedhoo in Dhaalu atoll. Speaking at the launch, President Yameen suggested that the Maldives could be developed using available resources.

When asked which would be more beneficial to the Maldives, Rilwan said “it’s a choice of the government.”  He noted that with the large income from tourism and the spread of guest houses in local isands, the oil drilling “won’t have benefits for the people as a whole.”

“We can’t afford to go into that dirty energy,” he concluded. “When you take up the issues of drilling, we are concerned about the oil container tanks with unrefined fuel passing through.”

With this in mind,  Rilwan asked, “can we avoid a distaster in the Maldives? The Maldives is a tiny island and this can have a very negative impact, the tanks are a worrying thing.”

Famed for its luxury resorts, the Maldives has relied on tourism for an estimated 70 – 80% of its GDP. Plans to look for oil in the past had aimed to diversify the nation’s economy.

There are currently no confirmed plans for the location of the drilling, should it take place – an uncertainty which has made it difficult for environmentalists to comment on the matter.

Rilwan noted that the fact that it is not known whether drilling will be coastal or off-shore makes it difficult to predict environmental issues.

The renewed interest in the search for oil was prompted by the results of seismic reports conducted in 1991– the recent findings of which have caused authorities to seek foreign assistance.

The Maldives National Oil Company (MNOC) was founded in 2003 to take direct responsibility for the development of oil and gas industry in the Maldives.

“The fact that two leading oil exploration companies in the world had invested in exploration drilling in the Maldives, keeps up the glimmer of hope for commercial success of oil and gas exploration in the Maldives,” the MNOC has said previously.

“Today, with the remarkable improvement of technology in the area of oil and exploration such as three or four dimensional seismic survey systems etc., the Maldives National Oil Company is hopeful that oil or gas can be discovered in Maldives.”

Managing director of the MNOC Ahmed Muneez told local media last month that the government intended to start work on new exploration within a few months.

“We have contacted a Norwegian company and a German company to help us better understand the findings of the study. Based on this report, we’re hopeful of advertising the Maldives as a new destination of oil exploration,” Haveeru quoted Muneez as saying.

He explained that an outside company would be hired to conduct a global advertising campaign in order to market the country as an oil source.

Under the presidency of Mohamed Nasheed, the Maldives – famously vulnerable to the effects of climate change – had pledged to become carbon neutral by 2020.

Nasheed stated that the Maldives was a key model for other countries seeking to become more sustainable, and that an inability to meet the unilateral commitments would prove detrimental to wider arguments around the globe for adopting law carbon initiatives.

The government of Nasheed’s successor Dr Mohamed Waheed also said that it was committed to “not completely” reversing the Nasheed administration’s zero carbon strategy: “What we are aiming to do is to elaborate more on individual sustainable issues and subject them to national debate,” said Waheed.

Speaking to Minivan in October 2012, the government assured that they were adhering to their commitment to become carbon neutral by 2020 in spite of political uncertainty.

“We are continuing with the carbon neutrality program,” she said. “We are giving it our best shot,” said then Environment Minister Dr Mariyam Shakeela.

Minivan News was unable to obtain comments from the Ministry of Environment and Energy at the time of press.

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Q&A: UK’s FCO State Minister Hugo Swire

Hugo Swire is Minister of State for the UK’s Foreign and Commonwealth Office (FCO). Swire was previously Minister of State in the Northern Ireland office 2010-2012, before moving to the FCO with responsibility for Latin America, Cuba, Australasia, Commonwealth countries and now Sri Lanka and the Maldives.

JJ Robinson: Following the recent election are there any concerns about a potential authoritarian reversal in the Maldives, given that many of the same cabinet have been reappointed, including senior figures during Gayoom’s regime, and that the new Foreign Minister is the daughter of the former 30 year autocrat?

Hugo Swire: They’ve only made five appointments so it’s early days. In a small community you have the political class is a small pool to choose from, so you would expect to continuity to some extent.

Regarding the new government, we’ve issued our congratulations. It’s clear how we felt about the delayed elections – we felt that was wrong and we made our views very clear. But at the end of the day what we wanted were clear, transparent and fair elections. I’ve spoken to a number of people and election observers, and they say unanimously these elections may have been delayed, but they were transparent and fair.

It’s not for us to tell a sovereign government how to put together their cabinet. I had lunch with the new foreign minister and I find her very agreeable and very positive, and I’m sure she’s someone we will work together with very closely. I also met the acting Foreign Secretary; we are getting to know them and talked about areas of mutual concern. A good start – I’m the first minister to be in the Maldives following the recent general election, and I’m proud the UK was here first.

JJ: Some observers, while praising the conduct of the polls, have also privately questioned their fairness given the high level of Supreme Court involvement in deciding when they went ahead, the veto that was exercised over the polls on multiple occasions by candidates due to the Supreme Court’s judgement, obstruction on one occasion by the police, and finally the delay by a week which saw the winning coalition negotiation reached. Given that the polls were credible, to what extent to you consider them to have been fair?

HS: At the end of the day we saw a very high turnout – one which many countries such as the UK would be very proud to achieve, which shows that this is a maturing democracy where people engaged in the system. They’ve come up with a solution, there have been no complaints to us or the international community about the transparency or fairness of the elections, and there were a huge number of observers here.

We thought the elections should not have been delayed and we made our position very clear as I’ve said. At the end of the day I like to look forward, and we’re got these local council elections that have just been announced today that are now going to be in January, and also the Majlis elections in May.

Of course I think there are some issues with the Supreme Court’s decision requiring every candidate to sign every bit of paper, and I think that becomes very difficult with local council elections. There are issues like that which should probably be looked at

The Elections Commission has its work cut out for in over the next six months. They did a great job, incidentally.

JJ: You yourself speaking recently in the UK parliament on this topic referred to the conduct of the Supreme Court, in particular the UN Human Rights Commissioner’s statement on the behaviour of the Supreme Court and the judiciary.

What is the prospect now for judicial reform in the Maldives? Is there a need for that reform, and lastly how do you think the international community would react if, for example, the Nasheed trial was now reopened?

HS: In terms of judicial reform there is an issue with the training of judges here, of which there are about 170 around the country. Then you have the Supreme Court itself, and I know this has been an issue during the elections as to the power of the Supreme Court versus Parliament. This is something I’ve discussed with parliamentarians and others, and something that clearly needs to be resolved. I think the Commonwealth, and the UK independently, are in a good position to bring some of our expertise if asked to do so.

But at the end of the day you are dealing with a sovereign country so we’re not going to insist on anything.

In terms of your remarks about Nasheed, we’ve made it very clear that we think this is a government that has a mandate to govern in coalition and should be a government that reaches out to all. After all, an awful lot of people voted for Nasheed, and if they want to have a harmonious government going forward in the spirit they all signed up to in their speeches over the last 24 hours, we think it would be most unwise to start dividing society again by pursuing any kind of retribution or recrimination as a result of these elections. So we’re pretty clear on that front.

JJ: You mention the Commonwealth’s engagement. When the Maldives was placed on the Commonwealth Ministerial Action Group (CMAG)’s agenda (it has since been taken off), the outgoing President Mohamed Waheed declared this was something “of no concern”. Former President Gayoom has also publicly called for the Maldives to leave the Commonwealth. Do you think this is something that would damage the Maldives, or do you think the Maldives should make up its mind as to whether [being in the Commonwealth] is in its sovereign interest?

HS: I think both. I think it is absolutely the up to the Maldives to make up its mind on the subject, after all it is as you say a sovereign government and the Commonwealth is a coalition of the willing, a club of like-minded people who share common approaches and ideals; it’s not a compulsory club. But is it in the Maldives’ best interests to be in the Commonwealth? Most certainly it is.

The Commonwealth stretches across the world, it is 53 countries, trade is anything up to 50 percent cheaper to conduct inside the Commonwealth. It is a good family of nations and we’ve all signed up to the Commonwealth charter which is very strong on universal human rights. It’s a great club to be a member of and I think the Maldives should be proud of being a Commonwealth member, and I think they have a part to play.

JJ: The Maldives’ economic situation is pretty dire, and one of the ongoing challenges has been because of the democratic uncertainty up until the election, a lot of the donor aid was reticent. Do you see the Maldives receiving more bilateral aid now it has a clear democratic mandate, and what kind of aid do you think the UK might be in a position to provide?

HS: Putting together a coalition government when you’ve inherited a difficult economic legacy is something which is pretty familiar to us, because it’s something we did in May 2010. So I can empathise.

The International Monetary Fund (IMF) came up with five major things some time ago, and I’m not sure if they’ve been enacted in the way they might have been, such as cutting the size of the state and finding other ways to get more taxation.

I think the government has done a lot in terms of taxation and there is a wider tax base than there was before, but I think there are clearly other things they could do. The two main industries are fishing and tourism – there are up to 1500 British tourists in the Maldives at any one time so we’re a major player here. I was talking today about it – they are looking at other ways of expanding on the tourism theme, and other ways of doing it.

Clearly the economy here is dependent on just a few things. One of things [the new government] is going to look at is whether there are hydrocarbons here – drilling. I understand there was some offshore exploration some years ago. That would be a game-changer if they found oil.

In terms of international aid that is something that would be looked at by my colleagues, if the Maldives meets the criteria. But I think there are huge opportunities here that are unexploited, and the government needs to show some determination to get the budget under control and grow the economy: reducing the public sector, growing the private sector and increasing the tax take, and attracting inward investment.

It comes back to the same argument. In order to attract inward investment, you have to have a certainty and clarity for people investing, and that means judicial independence, transparency of government and lack of corruption. That’s how you attract inward investment, that’s how the UK does it, that’s the road any country seeking to attract serious investment needs to go down.

JJ: Final questioned – you mentioned oil drilling, which is one of the things the new President and his coalition partner have suggested. That would seem to move the Maldives away from this eco-friendly, carbon-neutral image that the Nasheed government sought to promote. How do you think a move towards drilling would affect the Maldives, and would it impact things like climate change donors?

HS: We do this in the UK – we consider ourselves quite a green government. We have green taxes and we promote renewable energy, biomass, offshore and onshore wind, and yet we have drilling in the North Sea. So I dont think the two are confused or conflated.

Obviously in terms of the economy, as I said, if they find oil here that is a game-changer. We did have a long discussion at lunch about alternative energy, offshore windfarms and solar, and other such ways the Maldives could meet its targets. It’s enormously important – rising sea levels represent a real threat, and after the tsunami’s various populations were relocated. Of course if you’re living here climate change is a real problem for you. But I don’t think oil drilling necessarily can be anything other than beneficial, if done in a sensitive way.

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