Morocco’s Oil Exploration Attracts €25 Million in Investment in 2022

Rabat – Morocco’s oil exploration industry has attracted investments worth €25 million (MAD 280 million) in the first nine months of 2022, according to the Moroccan National Hydrocarbons Office (ONHYM).

Citing a recent ONHYM report, the Spanish press agency EFE stated that the Moroccan office itself invested €1.5 million (MAD 16.8 million) in oil exploration in the first nine months of 2022. The remaining investments came from 11 oil and gas companies operating in a total area of 207,423 square kilometers. The exploration zones are located on land and sea.

Morocco, says EFE, has granted 58 exploration permits and ten exploitation concessions to support energy exploration projects in the country.

The recent energy crisis has notably highlighted the downsides of Morocco’s continued reliance on energy imports.

In the first nine months of 2022, Morocco’s energy bills reached MAD 103 billion ($9.4 billion). The surge in energy prices has exacerbated the country’s trade deficit and placed a difficult burden on citizens.

To reduce the country’s reliance on energy imports, Morocco has invested in developing a renewable energy infrastructure to meet domestic needs. However, the country’s investment in green solutions did not stop Rabat from encouraging and financing fossil fuel-related projects on its soil despite global calls for cutting fossil fuel financing.

This week, Morocco has partially responded to these calls at COP 27 by vowing to phase out coal by 2040. This initiative aims to reduce the country’s contribution to global greenhouse emissions over the coming years.

However, Morocco continues to host foreign oil companies such as Chariot, Sound Energy, and Europea Oil&Gas. The three firms are currently leading feasibility studies to assess and exploit the country’s untapped oil and gas reserves, with some of their sampling studies reporting “promising” results.

In April, British exploration and production company Europea Oil&Gas reported the discovery of one billion barrels at an offshore oil exploration platform in Inezgane, near Agadir, southern Morocco.

The discovered oil reserves are valued at $100 billion, which is close to Morocco’s GDP in 2020, $112.9 billion. However, as part of agreements to allow foreign oil companies to drill in Morocco, only a part of this value is likely to go into Moroccan coffers, or supply the Moroccan market.