Morocco's House of Representatives passes oil drilling law

The Moroccan House of Representatives (the lower house of parliament) passed on Thursday a bill on oil prospecting in Morocco.

The text provides for a decrease of the state's share from 50 to 25 percent if oil is found. It also includes fiscal incentives.

"Upon the request of international societies, we have revised the royalties system, instituted a total tax exemption over 10 years and reduced concession duties, enabling firms to compensate the fees of unfruitful drilling," Moroccan Energy and Mining Minister Youssef Tahiri had said.

The promotion of oil drilling operations is among the priorities the government's action plan. Part of this drive, Morocco is endeavoring to consolidate cooperation with international partners.

Last September, the energy and mining minister staged an intensive campaign in Britain and the USA to attract American and British companies interested in oil drilling in Morocco, including Skidmore Energy Inc..

Skidmore Inc., which already has a drilling permit covering an area of 3,318 square meters, concluded with the Moroccan ONAREP firm a contract on drilling and assessing the oil potentials in several regions in Morocco.

Morocco had concluded in the few past years oil drilling contracts with Saudi ARAMCO company, Australian Roc Oil Company and Swedish Taurus.