Oil does exist in Morocco, minister confirms
Morocco, Economics, 9/28/2001

The Moroccan energy and mining minister on Wednesday confirmed the existence of oil in Morocco, but conceded that the reserves are not yet determined.

Oil and gas exist in Morocco but it is still too early to determine the national reserves, Mustapha Mansouri, who is also industry and trade minister, told a meeting held in Casablanca by the Moroccan Energy Federation.

Morocco had announced in 1999 the find of important oil reserves in Tansint, south-eastern Morocco.

According to earlier estimates, oil and gas reserves at Talsint are assessed at 1.5 to 2 billion barrels.

Morocco, which imports 50 million barrels per year, had issued drilling licenses to several world companies which are now operating in several off-shore and in-shore areas in the country.

The North African country had passed a hydrocarbon law offering attractive terms to existing and potential newcomers, and has managed to attract oil major Royal Dutch Shell, among other mainly independent U.S. and Canadian firms, to take up more tracts.

State share was reduced to a maximum 25 percent in exploration permits and exploitation concessions, and royalty was set at 10 percent for onshore and shallow offshore tracts with exemption for the first 300,000 tons of crude produced.

Rates fell to seven percent for deep offshore blocks over 200 meters in depth with an exemption for the first 500,000 tons produced. Gas royalty ranged between 3.5-5 percent.

Companies were also exempt from corporate tax from the date of starting production for a consecutive 10 years.

During the Casablanca meeting, the energy and mining minister said the drilling in Talsint were "revealing."

The 50 licenses issued so far to world-famed firms confirm that "signs are positive," said Mansouri.

"We are extremely upbeat as to the discovery of oil and gas in our territory, but it is still too early to determine the volume of reserves," he said.

Previous Stories:
  U.S., ONAREP sign grant for feasibility study on gas production in Essaouira basin   (9/26/2001)
  London's Lord Mayor visits Morocco in October   (9/26/2001)
  Moroccan, Spanish employers meet in Madrid   (9/25/2001)

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