Morocco Grants Israeli Firm Exclusive Rights to Explore Atlantic Oil Block

The Israeli gas and oil exploration company, Ratio Petroleum Partnership, obtained from Morocco at the end of September the exclusive rights to explore and study the Atlantic Dakhla block, on behalf of Ratio Gibraltar, reports the Israeli site Energia News. Located along the Atlantic coast, this block extends from the coastline to the sea front over an area of nearly 109,000 km².

The entry into force of the agreement signed between the two parties is "subject to the approval of the Moroccan Ministry of Energy and Mines as well as the approval of the Audit and Partnership Commission". This agreement focuses on exploration down to water depths of 3,000 meters to determine the possible presence of hydrocarbons or gas. It defines the conditions under which Ratio could obtain oil and gas production licenses in accordance with the results of the study carried out by the company. Similarly, the agreement sets the conditions under which Ratio Gibraltar or Ratio Petroleum Partnership could obtain oil production licenses.

In the event that the Israeli company discovers oil at more than 200 meters under water and produces more than 500,000 tons, the Moroccan state will levy a royalty of 7%, and 3.5% for natural gas for a production of more than 500,000 cubic meters in accordance with Moroccan law.