Junior energy firms to continue to lead hydrocarbons exploration in Morocco
Morocco is hopeful that more gas discoveries will help mitigate its costly oil imports, but it will have to continue to rely on smaller energy firms for exploration efforts.
To:
Al-Monitor Pro Members
From:
Francisco Serrano
Journalist and analyst specialized in North Africa
Date:
Feb. 17, 2023
Bottom Line:
As a result of the war in Ukraine and higher oil and gas prices, Morocco spent an additional Dh 77.7 billion ($7.5 billion) on energy imports in 2022 compared to 2021. The absence of sizable domestic hydrocarbons discoveries and competition from resource-rich neighbors Algeria and Libya, have kept oil majors at bay, leaving most exploration efforts to junior firms. However, recent gas finds are set to give domestic production a boost and help mitigate the costly dependence on energy imports. But authorities also hope that higher prices and favorable legislation will attract new investors.