Maldives Cabinet Approves Legal Framework to Harness Offshore Oil, Gas and Mineral Resources

In a landmark move aimed at unlocking the economic potential of the nation’s exclusive economic zone, the Cabinet approved the establishment of a dedicated legal regime governing the exploration and extraction of oil, gas, minerals and other non‑living marine natural resources within Maldivian maritime zones. 

The decision, taken at the Cabinet meeting on Sunday, followed a comprehensive paper presented by Minister of Fisheries, Agriculture and Ocean Resources Ahmed Shiyam, which outlined the strategic, environmental and fiscal parameters for a sustainable offshore sector.

Under the new directive, the Ministry of Fisheries, Agriculture and Ocean Resources, in close coordination with the Ministry of Environment, the Department of Marine Resources and relevant regulatory bodies, will spearhead all preparatory work—including geological surveys, environmental impact assessments and the drafting of a “Marine Natural Resources Bill.” 

The bill will codify procedures for issuing exploration and extraction permits, define state ownership of discovered hydrocarbons and minerals, and set up an autonomous regulatory authority to monitor compliance, safety and revenue distribution.

The Cabinet’s action revives a fledgling initiative first launched during the administration of former President Abdulla Yameen, when a foreign contractor was granted a concession to conduct offshore oil exploration. 

At that time, Minister of Fisheries Mohamed Shainee cited a 2014 University of Hamburg study that identified “fluid or gas” anomalies beneath the seabed and argued that subterranean freshwater reservoirs could provide the organic material needed for hydrocarbon formation. However, the venture stalled after a sharp global oil price collapse rendered commercial development uneconomical.

Minister Shiyam said the new framework seeks to learn from past setbacks, apply rigorous scientific appraisal, and ensure that any future exploitation delivers transparent, long‑term benefits to the Maldivian people. 

He added that the government will also explore joint‑venture models and revenue‑sharing schemes with reputable international partners, while safeguarding the nation’s fragile marine ecosystems.

The Cabinet’s resolution marks the first formal step toward a structured assessment of the Maldives’ offshore resource base, signaling a shift from exploratory curiosity to a regulated, revenue‑generating sector that could diversify the country’s traditionally tourism‑driven economy.