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U.S., ONAREP sign grant for feasibility study on gas production in Essaouira basin
Morocco-USA, Economics, 9/26/2001

The United States donated Morocco $177,063 destined to co-finance a feasibility study related to the Toukimt and Meskala Gas Simulation project in the Essaouira basin.

The grant, extended by the U.S. Trade and Development Agency (TDA), will co-finance, with The Moroccan board for oil research and exploitation (ONAREP), the project whose total cost is estimated at $354,126.

Director General of ONAREP, Ms Amina Benkhadra, and U.S. Ambassador to Morocco, Ms Margaret Tutwiler, signed the agreement in Rabat Tuesday.

This grant brings total TDA grants to Morocco since 2000 to $ 2.5 million, and underscores, once again, U.S. commitment to helping Morocco develop its energy sector.

In the course of the signing ceremony which was attended by senior Moroccan and American officials, Ms. Benkhadra conveyed her sincere condolences to the families of the missing in the U.S. attacks of September 11, and her solidarity with the American people.

In response, Ambassador Tutwiler voiced her strong commitment to advancing U.S.-Moroccan cooperation in all fields. "Morocco has been a real success story in terms of its interest in developing infrastructure, and its ability to recognize the value and potential for U.S. Trade and Development Agency projects to help it reach that goal. In fact, TDA selected Morocco, out of all nations in the Middle East and North Africa, as a model country for the year 2001."

ONAREP has been producing gas and condensate from two fields in the Essouira Basin for more than 15 years. The two fields have production problems which include excessive water in certain wells, fall of pressure, decline in productivity and salt deposits in one well.

The funding will allow for an integrated simulation study that applies petrophysical, geological, geophysical, reservoir and production engineering data to mitigate these problems. The study will be conducted by a US contractor to be selected after a tender. Two ONAREP representatives will work with the selected contractor on some key elements of the study.

After the study is completed, the simulation will be used to understand the causes of water production and condensate dropout, and to minimize the water production in order to optimize the gas and condensate. The simulation will also allow ONAREP to look at probable reserves in both fields, study future operating scenarios for planning future development, determine optimum location of future production and injection wells, make informed recommendations for training, and explore all means to maximize the potential of the two fields.

Previous Stories:
  Morocco's health minister calls for increasing US investments in pharmaceutics   (8/25/2001)
  Morocco, US resolved to enhance relations between SME   (8/18/2001)
  US agency grants morocco's drinking water office $ 400,000   (8/9/2001)

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