RE: Rharb Permit Morocco5 Dec 2015 20:21
EXECUTIVE INTERVIEWS, Amina Benkhadra, ONHYM, June 2015.
How much is the current low oil price environment affecting your plans this year? What about investment into the country?
As I said earlier, despite the lack of commercial discoveries, the wells drilled in Morocco demonstrated working hydrocarbon systems both offshore and onshore, both for oil and gas. These have also improved our understanding of new and promising play concepts. Along with new technologies, we are confident that forthcoming drillings will push toward, commercial discoveries. Above-ground, Morocco remains an attractive investment prospect, when compared to its regional peers. Morocco provides stable political environment, attractive fiscal regime and favorable licensing terms. In the context of lower oil price environment, we believe that these factors will most likely favor Morocco to sustain investment to explore Moroccan sedimentary basins both offshore and onshore.
Gas discoveries in the Rharb center looks very promising. How are planning to monetize the discoveries and how soon will this happen?
The Rharb Basin, the setting of the first discovery in North Africa, is still attracting interest, being one of the only two actively productive basins at the moment. Circle Oil has made 13 commercial gas discoveries from 15 wells drilled in the basin since 2008. As the basin lies close to industry centers, the small, shallow fields found to date have proved profitable. Relatively shallow drilling, coupled with existing gas pipe network to industry centers, make exploration in the Rharb Basin profitable. The produced gas is sold to local industry.
Are there enough attractive prospects in Morocco to attract M&A, JVs and new Companies farming in for development?
Morocco is an under-explored hydrocarbon province that offers high-impact exploration opportunities across multiple play types. Various seismic surveys acquired in the last decades permitted to identify a myriad of play concepts and prospects both onshore and offshore. The limited drilling have demonstrated the existing of various working hydrocarbon systems. We expect high level corporate activity to continue. With limited open blocks available, we hope increased corporate activity with larger players expanding their existing position and new entrants completing farm in to acreage held by smaller independents to gain access to the offshore, onshore and unconventional exploration plays.
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