Why Morocco

Morocco’s petroleum resources are largely unexplored, offering the opportunity for attractive exploration and development initiatives to supply a significant domestic natural gas market. Morocco has strong, long-term demand that reflects North African and European pricing.

Why Morocco?

Morocco Facts

Morocco is a fiscally favourable natural gas market with strong, long-term demand and access to North African and European gas pricing.

  • Capital: Rabat
  • Official language: Arabic
  • Area: 710,850 square kilometres
  • Population: 32 million
  • Chief products: Agriculture, manufacturing, mining – phosphate rock, phosphoric acid
  • Political system: Constitutional monarchy under a hereditary king. The legislature has two houses – the Chamber of Representatives, members elected directly, and the Consultative Chamber, members chosen by electoral college. The king appoints the prime minister and cabinet.

Gas Monetization Opportunities

  • Morocco imports 99% of oil, 91% of gas
  • Africa’s second largest importer
  • Energy bill of US$13 billion, half of the trade deficit
Strong domestic market
  • Energy demand up 54% over last decade, on steady rise
  • Potential gas conversion into electricity
  • Tahaddart: gas intake capacity 49 mmcf/day
  • Ain Beni Mathar: gas intake capacity 34 mmcf/day
  • 80% of electricity primary energy source is thermic
Phosphate industry / OCP
  • Gas to support local industry
  • Morocco is home to 85% of the world’s known phosphate reserve
  • African Development Bank loaned $250 million to OCP for industrial platform at Jorf Lasfar
  • Moroccan exports as share of world trade: 32% phosphate rock, 11% fertilizers
  • OCP plans to double production of rock and triple production by 2020
Fundamental economics
  • Competitive gas price
  • Spot condensate price

Political & Economic Stability

Political stability
  • Only North African political regime unaffected by Arab Spring
  • Constitutional Monarchy
  • Democratically elected government
  • Stable political system and secure operating environment
Rapid economic growth
  • 4.4% CAGR GDP growth (2005-2010)
  • Foreign investment of US$45 billion in 2011
  • Four times higher than in 2001

Fiscal Terms

Fiscal incentives
  • 25% state participation
  • Royalty: oil 10%, gas 5%
  • 10 year corporate tax holiday on discovery

Exploration Activity

  • Well density of just 0.06 wells per 100 square kilometres vs. estimated global average of 2 wells per 100 square kilometres
  • 3,500 kilometres of coastline with only 31 wells drilled offshore
  • Many sedimentary basins remain sparsely explored
Increasing exploration
  • 12 times as many exploration permits in 2012 than 1997