Morocco’s Natural Gas Reserves Attract Global Energy Companies

Morocco attracts international companies specializing in gas exploration due to its potential in hydrocarbons in general (gas and oil). According to Abdellah Mouttaqi, Secretary General of the National Office of Hydrocarbons and Mines (ONHYM), the geological and geophysical evaluation studies carried out over the past decades have made it possible to certify that "Morocco has several sedimentary basins onshore and offshore whose geology has allowed the genesis of different petroleum systems that could potentially be favorable to the accumulation of gas deposits."

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In an interview with Challenge, the official stated that the Moroccan authorities have also created the conditions to attract investors in this sector. The Moroccan state offers several advantages to oil companies, including a 10-year exemption from corporate tax as well as several tax exemptions (VAT, professional tax, etc.) and attractive rates for the concession right and surface rent, he specifies.

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Abdellah Mouttaqi also presented the areas under development and production. These are the Gharb basin where productive gas deposits have been discovered. These deposits, despite their small size, "are economically interesting and profitable thanks to the existence, on site, of a significant gas pipeline network, as well as the proximity of several industries in the province of Kénitra," he explains, adding that these gas deposits are already in production and directly connected to the existing pipeline network and separation stations.

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Two of the exploration wells drilled between 2016 and 2018 by Sound Energy in the Tendrara region have also confirmed the presence of natural gas. This deposit will be put into production very soon, assures the Secretary General of ONHYM, who announced the recent signing with ONEE of a gas delivery contract via the Maghreb-Europe gas pipeline (GME) after the construction of a 120 km spur.

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Evaluation and gas exploration work continues on the Essaouira, Guercif, Zag, Boudenib, Missour basins and could lead to results. As of the end of November 2021, 13 companies are working with ONHYM to search for hydrocarbons (oil and gas). They have obtained "27 onshore permits, 26 offshore permits, 1 onshore reconnaissance authorization, 1 offshore reconnaissance authorization and 8 exploitation concessions. Among these exploration permits, 30 are dedicated exclusively to gas exploration, including 2 offshore," Abdellah Mouttaqi pointed out, indicating that 27 billion 134 million dirhams of investments have been made between 2000 and 2020.