Moroccan, US firms conclude $50 million drilling accord

The Moroccan state-run Oil Drilling and Exploiting Company ONAREP concluded in Rabat Wednesday a drilling contract with US Lone Star Energy.

The firm will invest $50 million for drilling and exploitation operations, Moroccan Energy and Mining Minister Youssef Tahiri said during the signing ceremony.

Morocco had issued three drilling licenses to the US firm in three different on-shore and off-shore sites over a 6,000 square km area, he said, adding that these licenses cover eight years of work.

ONAREP director Mohammed Douieb said early drilling operations by the US company in Morocco yielded promising results. He added that other accords with the company are in the pipeline.

Lone Star Energy, which has been operating in Morocco for the past two years, is currently operating five on-shore and off-shore sites in Morocco.