An Israeli company signed on Tuesday a gas and oil exploration deal with Morocco.
NewMed Energy reported that it has signed agreements with Adarco Energy Limited and Morocco’s National Office of Hydrocarbons and Mines for the performance of natural gas and/or oil exploration and production activity in the Boujdour Atlantique exploration license, which is located off the coast of Morocco in the Atlantic Ocean.
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NewMed Energy CEO Yossi Abu and Morocco's Minister of Energy Transition and Sustainable Development Leila Benali
(Photo: NewMed Energy)
According to the agreements, NewMed Energy will hold a 37.5% stake in the interests in the exploration license. Adarco Energy Limited will hold another 37.5%, and the remainder of 25% is granted to Morocco’s National Office of Hydrocarbons and Mines, in accordance with the Hydrocarbon Law of Morocco.
As previously announced at an investors’ conference held in February, the Partnership revealed it was in the advanced process of obtaining exploration permits in Morocco, and that it had identified Morocco as a target country with enormous geological and commercial potential.
The asset Boujdour Atlantique is in the south of Morocco’s EEZ and the license therein is to be issued for a total of 8 years. According to the planned work plan, 30 months from the date of the granting of the license, a geological and geophysical analysis will be performed in the area of interest, and an initial exploration drilling is planned after around 2.5 years.
The agreements are contingent on receipt of approval from Morocco’s Ministry of Energy Transition and sustainable development and Ministry of Finance, and the approval of the general meeting of NewMed Energy.
Yossi Abu, CEO of NewMed Energy: “From one day to the next we are expanding our international operations and becoming a global body in every respect. We have long identified enormous potential in Morocco and today’s announcement is part of an extensive strategic move that will render NewMed Energy the leading energy body in the East Mediterranean region and North Africa. We are maximizing the value from our core assets alongside expansion of the existing business, launching natural gas exploration and production activity in other countries and developing alternative energy operations.”
Harry Murphy, Director of Adarco Energy Limited: “This is an important milestone for Adarco Energy Limited whose principals have been active in the energy market for many years. We are delighted to be entering the Moroccan natural gas exploration sector in partnership with NewMed Energy, a leading energy company which has invested massively in the petroleum industry and has been involved in major discoveries over the past 30 years.”