Morocco’s National Office of Hydrocarbons and Mines has signed a gas exploration license deal with mining and energy firm, Adarco, and Israeli oil and gas company, NewMed Energy.
According to the terms of the agreement, NewMed Energy serving as operator and Adarco will hold a 37.5% stake each in the Boujdour Atlantique license located south of Morocco’s offshore economic zone while the Moroccan government will maintain a 25% share.
The 8 year license agreement paves the way for the 3 parties to conduct surveys of the gas reserves available in the southern part of Morocco’s offshore basin, with the parties conducting drilling activities after approximately 2 and a half years, subject to compliance with a work plan.
The move follows NewMed Energy progressing with a merger with Capricorn to create a larger oil and gas company that will focus on maximizing the exploitation of the vast hydrocarbon resources across the Middle East and in Africa.
According to Yossi Abu, CEO, NewMed Energy, “For a long time now, we have recognized a huge potential in Morocco for collaborations in both the natural gas and renewable energy sectors.” As such, this deal is set to expand the Moroccan energy market even further on the back of cooperation.