Morocco announces new E&P incentives

The Moroccan government announced significant new exploration and production incentives at a news conference in Calgary earlier this month. Morocco plans an international bidding round in October on the Rabat-Safi offshore Atlantic sector.


CALGARY�The Moroccan government announced significant new exploration and production incentives at a news conference in Calgary earlier this month. Morocco plans an international bidding round in October in the offshore sector between the coastal cities Rabat and Safi.

Minister of Energy and Mines Youssef Tahiri emphasized the importance of the energy sector for economic and social development in Morocco. He said the amendments to the country�s hydrocarbon regulations make it among the most attractive investment areas in the world for exploration and production.

Changes include:

� A reduced level of state participation in field development to a maximum of 25%.

� A 10-year income tax holiday.

� Zero royalty on initial production, and thereafter royalties of 10% for crude oil (7% for deep water) and 5% for gas (3.5% in deep water).

TGS-NOPEC Geophysical Co. recently completed 4,816 miles of nonexclusive 2D seismic date (plus gravity) over the deepwater part of the area. The new data have been tied to existing data.

Preliminary data show a thick Mesozoic section with abundant grabens, salt diapirs, and anticlines.

An interpretation report, including prospect evaluations and project economics, will be prepared by IHS Energy Group. It will be available from mid-September free of charge to all companies that license at least 75% of the TGS-NOPEC seismic data.

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