The Seychelles could fast-track permission to hunt for oil in the waters of its archipelago of tropical islands within weeks, paving the way for drilling by the end of the decade.

PetroSeychelles, a state-backed oil company, said its negotiations with oil minnow Sub Sahara Resources (SSR) should conclude shortly, while the planning process could complete within the next two years.

Chief executive Patrick Joseph said: “If there are no big issues – which I don’t think there will be – we should complete negotiations within one month.”

Mr Joseph said the islands could host a “world-class” oil discovery based on its early test drilling. The region has only undertaken four early test wells, of which three have suggested “excellent” hydrocarbon reserves just a hundred yards below sea level.

It is too soon to say exactly how lucrative the reserves might be, but at shallow water depths it is likely to be a low-cost option for hopeful oil producers, he said.

PetroSeychelles began formal negotiations with SSR less than a fortnight ago in a bid to bring an end to a difficult few years for the group, which has already lost a string of potential partners.