Rabat – A new oil discovery in Morocco’s Agadir Basin has provided some new hope for British oil and gas company. Europa Oil & Gas which has suffered from high costs and sustained losses over the past year, driving down its stock value. The British exploration firm announced finding reserves estimated at 1 billion tons within the Inzegane permit area, Spanish news outlet Ecoticias reported.
The Inzegane permit, covering over 11,220 square kilometers near the coasts of Tarfaya, Sidi Ifni, and Tan-Tan, positions Morocco as a key player in future energy development.
Europa Oil & Gas holds a 75% stake in the permit, with the remaining 25% owned by Morocco. Located just 200 kilometers from the Canary Islands and 100 kilometers from Spain’s maritime boundary, the discovery could bolster the company’s fortunes after a rough year.
For Morocco, this find could potentially represent a modest boost to its energy portfolio. It aligns with the country’s broader strategy of reducing energy imports and leveraging domestic resources to fuel economic growth.
Morocco, which currently relies heavily on imported energy, has been actively seeking ways to diversify its energy mix, including renewable energy initiatives and fossil fuel exploration.
While Morocco’s fossil fuel reserves are modest, its proximity to European markets, particularly Spain, and growing interest in African energy sources have positioned Morocco as a possible regional hub for investment and collaboration.
However, as Morocco continues its long and difficult journey towards energy self-sufficiency , environmental considerations are likely to emerge as a critical part of the conversation. Spain has made similar discoveries in recent years but has opted to not exploit the resources, instead opting for green energy.
While the discovery is promising for the British company’s stock price, it seems that proving reserves and successfully extracting resources are distinct challenges. Collaborative efforts between Moroccan authorities and Europa Oil & Gas will be key in determining the viability of large-scale production. It has had little effect on the company’s stock price, which is down 4% today, at the moment of writing.
As Morocco pushes forward with offshore resource exploration, this discovery and the choices ahead, point to the challenges of balancing resource exploitation with environmental sustainability.
In 2022, the country’s oil exploration sector drew investments totaling €25 million (MAD 280 million) in just the first nine months, according to the Moroccan National Hydrocarbons Office (ONHYM).
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