Why Morocco

Download Longreach's report on Energy consumption in Morocco

Country Statistics

• Size: 710,850 km2
• 2012 Population: 32,309,239
  

Hydrocarbon Potential

Political & Economic Stability

• Political Stability
  Only North African political regime unaffected by Arab Spring
  Constitutional Monarchy
  Democratically elected government
  Low political & security risk forecast (Source: Control Risks)
• Rapid Economic Growth
  4.4% CAGR GDP growth  (2005-2010)
  Foreign investment of US$45 billion in 2011,
  4 times higher than in 2001
  Fitch rating BBB-, Stable Outlook

Source: CIA, Reuters, Fitch, Control Risks

ENERGY FUNDAMENTALS

Strong Domestic Market

• Energy bill of US$10.7 billion in 2011
• One of Africa’s largest energy consumers
• Energy demand +54% over last 10 years
• 33 million population
• Key energy users: Residential, Industry, Phosphate Mines, Agriculture

Undersupplied

• Africa’s 2nd largest importer
• One of Africa’s largest energy consumer
• Morocco imports 99% of oil, 91% of gas
• No stranded reserves

ECONOMICS & FISCAL TERMS

Morocco is one of the most fiscally favourable countries worldwide to explore

Fiscal incentives

• 25% State participation
• Royalty: Oil 10%, Gas 5%
• 10 year corporate tax holiday on discovery

What this means…

• Producing 1bbl of Oil in Morocco is equivalent to
• 13bbl in Algeria
• 7bbl in Nigeria

EXPLORATION ACTIVITY

Underexplored