This wait-and-see approach stems primarily from the fact that neighboring Algeria hasn’t finalized the amendment of its petroleum legislation yet. Anadarko Petroleum Corporation (NYSE:APC) believes that the modification of the Algerian petroleum legislation is necessary to make Algeria a viable prospect for unconventional oil and gas. Once Algeria completes this modification, Anadarko Petroleum Corporation (NYSE:APC) will evaluate how to proceed with its operations on the Algerian border.
4) Kosmos Energy Ltd (NYSE:KOS) holds a significant position offshore Morocco. This acreage is located in the under-explored Agadir (three Blocks) and Aaiun Basins (one Block), totaling approximately 14 million gross acres. This is a post- and pre-salt Cretaceous play that has substantial running room, according to the company, which is currently processing and interpreting 3D seismic data from its 2012 data acquisition. Kosmos Energy Ltd (NYSE:KOS) is looking to farm-down ahead of drilling and is planning for initial exploration drilling in late 2013.
5) Chevron Corporation (NYSE:CVX) is also hunting for oil in Morocco. In early 2013, the company signed petroleum agreements with ONHYM for three offshore areas. The areas encompass 11,300 square miles with average water depths ranging from between 330 feet to 14,700 feet. Chevron Corporation (NYSE:CVX) holds a 75% stake in the three exploration blocks and plans to start its 2D/3D seismic offshore program soon.
6) A few months ago, Total SA (ADR) (NYSE:TOT) was awarded the 100,000 square kilometers reconnaissance licence in the offshore Anzarane block. The original reconnaissance licence expired in December 2012. Total SA (ADR) (NYSE:TOT)’s block is located in the very south of the country and its partner is ONHYM. Total hasn’t provided publicly any more information about its plans in Morocco.
7) EOG Resources Inc (NYSE:EOG) also took a position in the country in 2012. Its onshore acreage is located in the Tadla Basin, which is in the center of Morocco and appears to have potential for shale gas resource. However, the company’s shale gas exploration activity in the area has been very limited thus far.
8) Repsol holds significant acreage on the Moroccan coast and its plan is to assess the potential of gas-bearing sands off the African coast and the Canary Islands by 2014. Repsol is one of the first foreign companies with successful drilling results in Morocco. In 2009, it discovered two columns of gas totaling 90 meters in the Tanger-Larache area, 40 kilometers from the coast of Morocco.
Toronto-listed junior Longreach Oil and London-listed Cairn Energy PLC (LON:CNE), Circle Oil Plc (LON:COP), Genel Energy PLC (LON:GENL), Gulfsands Petroleum plc (LON:GPX), Chariot Oil & Gas Limited (LON:CHAR) and San Leon Energy Plc (LON:SLE) have also properties in Morocco and are gradually making progress on their exploration plans.
Foolish round Up
It remains to be seen how successful the first drilling results will be. If money starts flowing into the Moroccan oil industry, let’s hope that it won’t repeat what has already happened in some other oil-producing countries. Let’s hope that the wealth generated from Morocco’s oil and gas production will translate into higher standards of living for its citizens, and the wealth won’t be accumulated by a few politicians, their privileged friends, and the companies they hand out contracts to.
The article Will Morocco Be the Next Hot Spot for Oil and Gas? originally appeared on Fool.com.
Nathan Kirykos has no position in any stocks mentioned. The Motley Fool recommends Chevron. The Motley Fool owns shares of Freeport-McMoRan Copper & Gold. Nathan is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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