Your Oil and Gas Council
While other North African countries struggle with unrest growing investor uncertainties, Morocco has succeeded in becoming the new investment hub for oil and gas.
That is the opinion of Amina Benkhadra, director general of the Moroccan National Hydrocarbons and Mining Company (ONHYM), who told the Oil & Gas Council Morocco’s political and economic landscape, coupled with a favorable tax system, made the country seems like the safest place for operating in Africa.
“Morocco has upstream potential which is being developed, but this will take time. On the other hand, we have a very well-developed downstream industry,” Benkhadra said.
“The refinery operating at Mohammedia near Casablanca has a total crude oil distillation capacity of about 10 Million tons per year. Production of petroleum and other liquids in Morocco was 100 toe in 2014, while total petroleum consumption stood at 10.400 toe. Likewise, natural gas production falls well below consumption, totaling 92 MNm3 in 2014, while consumption was 1 116 MNm3.”
She said with most of its energy needs met by importing hydrocarbons, Morocco planned to reduce its dependency on foreign imports by developing renewable energies to meet domestic electricity needs.
“Two main projects for solar (2000MW) and Wind (2000 Mw) are under development in different areas of the country. By 2020, renewable energies will represent 42% of the global electrical capacity installed.”
Morocco has been working to expand its oil storage and distribution capabilities to improve its security of supply. In 2012, the country completed the construction of the 3.35 million barrel capacity Horizon Tangier terminal. Additional storage and distribution terminals are under development in the port of Jorf Lasfar.
“It’s worth it to mention that a portion of the Maghreb-Europe Pipeline, which transits natural gas between Algeria and Spain, passes through Morocco. In lieu of transit fees, Morocco receives natural gas from the Europe-Maghreb Pipeline Limited every year.”
She said ONHYM had implemented a strategy refocusing on hydrocarbon exploration, evaluation and promotion. These effects permitted to attract a host of oil and gas players, making Morocco a new investment hub. “The growing interest of oil companies including the majors confirms that. She added that Morocco was an under-explored hydrocarbon province that offered high-impact exploration opportunities across multiple play types.
“Various seismic surveys acquired in the last decades permitted to identify a myriad of play concepts and prospects both onshore and offshore. The limited drilling have demonstrated the existing of various working hydrocarbon systems. We expect high level corporate activity to continue.
“With limited open blocks available, we hope increased corporate activity with larger players expanding their existing position and new entrants completing farm in to acreage held by smaller independents to gain access to the offshore, onshore and unconventional exploration plays.”
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