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.
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
Undersupplied | - Morocco imports 99% of oil, 91% of gas
- Africa’s second largest importer
- Energy bill of US$13 billion, half of the trade deficit
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Strong domestic market | - Energy demand up 54% over last decade, on steady rise
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Electricity | - 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
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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
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Fundamental economics | - Competitive gas price
- Spot condensate price
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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
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Rapid economic growth | - 4.4% CAGR GDP growth (2005-2010)
- Foreign investment of US$45 billion in 2011
- Four times higher than in 2001
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Fiscal Terms
Fiscal incentives | - 25% state participation
- Royalty: oil 10%, gas 5%
- 10 year corporate tax holiday on discovery
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Exploration Activity
Underexplored | - 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
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Increasing exploration | - 12 times as many exploration permits in 2012 than 1997
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