ZLATENICO OKO
President Benes
OIL EXPLOITATION
Presidential Palace, September 29, 5429: At a meeting of the Council of Ministers, it was decided after considerable deliberation to proceed with building some oil rigs off the Lake Majatra coast of Doron Akigo Okrug where crude oil has long been determined to exist. The operation will not be to get into the international oil market but rather to insure adequate domestic supply should the next roiling of the crude oil and natural gas markets overtake Republika Deltarska as the last round did some of her neighbors. While contracts for a more than adequate supply are in place, it was felt that things can change and precautions should be taken.
With current supply in place, it is felt haste is not necessary. Republika Deltarska also is quite aware four other nations abut Lake Majatra with interests in the oil and gas reserves thereunder and neither wants to appear to be trying to claim more than its share or create a hostile situation with its neighbors. In point of fact, efforts to have a common project with them were met with feeling their status quo was quite satisfactory.
Hadsingos will be the center of operations and Roskilde, a town to its west is expected to be the site of refinery. Roskilde Fishing Boats is a business there expected to produce craft for transporting liquefied natural gas. The University of Hadsingos Engineering Department is prepared to be the focal point of training. Emphasis will be not only on recruiting qualified and trained personnel but also workers, managers, technicians and engineers with experience in oil extraction and refining particularly from such Majatran operators as ENIST, Kafuri National Oil Company, Qat Oil Services and Majatran Refining Corporation.
President Ludvik Benes announced the formation of a government corporation, Sovereign People Oil Corporation (SPOC) which will own the Deltarian oil and gas reserves and extract, refine, store and market a portion of those reserves. No other nation or private enterprise may outright buy any part of those reserves or SPOC itself. SPOC will be able to lease for a certain period for royalties certain sites for extracting oil and gas. Lessees may be Deltarian individuals or businesses. Lessees may employ others foreign or domestic in extraction operation and sell a portion of their rights in the lease within the limits of Deltarian current law.
The President emphasized that since there were serious limits on the reserves, private investment foreign or domestic was liable to be hard to find but he hoped for some.