Oil, Gas Discovered off Morocco, Daily

The Moroccan L'Economiste daily reported on Friday that oil and gas was discovered off the shores of the Moroccan city of Kenitra (40 km north of here).

The find will be officially announced in two or three weeks, the daily said, adding the company drilling the area "will be fixed on the potential of the zone in the few coming days."

The company, which faced some difficulties in drilling in view of the geological nature of the zone, is upbeat as to the oil potential in the area.

Last year, Lone Star Energy Corporation, off-shoot of the US Skidmore inc. announced the discovery of oil and gas reserves at Talsint, eastern Morocco.

Besides Talsint, the US firm has four other licenses to drill in Loukous, Labrouj, Safi, and Essaouira Atlantic regions over an area of 37,000 square km.

Morocco, which is not yet an oil-producing country, was severely hit by the hike in oil prices as it imports 95% of its annual 9 million tons of oil needs.