La Vieeco: Morocco optimistic to discover oil after Mauritania

Morocco is upbeat over discovering oil off-shore after neighbouring Mauritania did, said, in Rabat Friday, Managing Director of the Moroccan Office of Hydrocarbons and Mining (ONHYM), Amina Benkhadra.

Benkhadra told "La Vieeco" weekly experts are "convinced the two adjacent offshores are similar geologically." The identical geological make up of the region could make prospecting at the Moroccan level conclusive, notably at the southern Atlantic offshore, she noted.

The Moroccan official said chances to discover profit-making oil are "intact" and ONHYM will continue oil prospecting operations through attracting foreign investments and investing more in oil research in the kingdom.

She noted that oil prospecting in the north African country is at its debut and other concessions are still to be prospected.

"Despite the limited drilling number in Morocco, there are signs of potentials similar to American and African productive fields," she said.

Prospecting is a "complex, very costing and high-hazard process," she said stressing that according to the nature of the sedimentary fields, prospecting operations may last for a long time to assess the oil potential of a basin and its commercial value.

Fifteen international oil companies are currently prospecting in various regions of Morocco investing around 50 million euros, Mrs Benkhadra had said recently.

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.

Oil fields in Morocco are still not tapped enough, for drilling has not yet reached 0.01 well per 100 square km, when international average is 8 wells per 100 square km, she said.

Morocco's oil imports and supply of oil stood at USD 2.6 billion 2004, i.e. a USD 260 million increase compared to 2003.