Why Morocco

COUNTRY STATISTICS

  • Size: 710,850 km2
  • 2008 Population: 34,343,200

POLITICAL & ECONOMIC STABILITY

  • Under the leadership of King Mohammed VI, Morocco is regarded as one of the most politically stable country’s on the African continent
  • Macroeconomic stability with low inflation, a large reserve of foreign exchange and a diminishing foreign debt
  • GDP growth of 5.8% in 2008 and 7.3% in 2006
  • Fitch Sovereign risk rating: BBB with stable outlook

OIL & GAS FUNDAMENTALS

  • Net Importer – 78% of gas consumption and 99% of oil consumption
  • Demand growing at 6.5% per year – faster than China
  • US$5 billion energy bill
  • One of the largest energy consumers in Africa

Favorable Fiscal Regime

  • Regarded as one of the most favorable fiscal regimes worldwide
  • New Hydrocarbon law since 2000
  • Exploration has intensified since this new code
  • Exploration permit: 8 years
  • Exploitation permit: 25 years, with 10 year extension
  • State pays its share of exploitation costs
FISCAL COMPARISONS
Region Oil Royalty Gas Royalty Corporate Tax State Participation Additional
Algeria Up to 50% Up to 50% 20% Up to 90%
Brazil 10% 10% 34%
Germany 15% 35% 33%
UK - - 50%
Morocco 10% 5% 32% Up to 25% 10 year
tax break

Exploration Development in Morocco

1997 – 9 PERMITS

2009 – 124 PERMITS

Exploration Activity – An Exciting Future

AN UNDER-EXPLORED PAST

  • 3,500km of coastline, only 31 wells drilled offshore
  • Many sedimentary basins remain sparsely explored
  • Current well density of 0.04 wells/100km2 versus global average of 8 wells/100km2

RECENT SUCCESS

  • 2009 – 9 wells, 7 successes
  • Circle Oil – gas discovery which tested at 19.24 million cubic feet per day
  • Dana Petroleum – gas well with estimate reserves of 100 bcf.

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