Morocco, China to assess oil opportunities in Morocco

Morocco and China are to assess oil opportunities in the North African country under a Memorandum of Understanding (MoU) signed in Beijing on Thursday between the "Office National des Hydrocarbures et des Mines" (National office of hydrocarbons) (ONHYM) and CNOOC Morocco Ltd, a subsidiary of the China National Offshore Oil Company LTD.

According to an ONHYM press release, CNOOC Morocco will assess oil opportunities in the basins of Haha (central south) and Missour (southeast). The Chinese company will also be in charge of the analysis and interpretation of seismic data relating to the said regions, covering respectively 2,680 square meters et 12,548.5 square meters.

Fifteen agreements for both onshore and offshore sites link Morocco to internationally renowned oil companies, and another three are underway.

ONHYM and its partners invested USD 300 m in exploring activities in the 2000-2004 period, including USD 240 m in onshore and USD 52 m in offshore.

Morocco is making efforts to attract foreign investors to explore other potential areas by providing interesting incentives, as the State's share of participation is only 25% in case of discovery. There is an exemption of income tax for the first ten years and companies can make provisions for renewing their reserves.

This new law places Morocco among the top five countries for hydrocarbon investment, according to a study by a consortium of petroleum companies comparing legal frameworks in different countries.