King Mohammed probes national oil strategy

King Mohammed VI of Morocco, chaired Tuesday a work session to examine the national oil strategy.

This session, attended by some members of the Government headed by Prime Minister Driss Jettou, is part of actions conducted following the two blazes that broke out in Morocco's biggest oil refinery "Samir" (at the port of Mohammedia, 60 km South Rabat) in November 2002 and in September 2003.

Following these events, the Moroccan sovereign had ordered a deep examination of the refinery sector given the importance to guarantee security in plants and the neighboring areas.

After examining the global energy situation and development prospects of infrastructures in terms of security and supply of oil products, the king gave instructions to conduct actions aiming at guaranteeing the supply in the best conditions and preventing industrial and ecological hazards.

These actions are also aimed at modernizing refineries to improve the quality of products and reduce harmful emissions. They are also destined to set up fresh units to keep in pace with the evolution of the needs of the national market and the international context, reinforce reception capacities in the country's ports to diversify supply sources and allow a better regional repartition and the increase of stocks of strategic security.

The National Supply Committee will continue to regulate the import of oil products in accordance with national production.

During the work session, the King inquired about oil exploration in the kingdom that is witnessing a particular dynamic after the setting up of a new strategy following royal instructions in 2000.

Currently, over 17 international oil companies are operating in Morocco, and between 85 and 90 percent of the Moroccan offshore is being explored by these companies.

This fresh move is the result of a new law on hydrocarbons and the promotion of foreign investments by the state-owned National Office for Hydrocarbon and Mining (ONHYM).

The sovereign also issued instructions to support ONHYM, notably by providing the oil and mining sector with the necessary financial means to benefit from current opportunities and increase investments.