Morocco
S10 ORA 1 2014 Morocco Geology_Layout 1 2/6/2014 1:54 PM Page 46
Following a string of large oil discoveries along Africa’s western coast, oil exploration fever arrived in Morocco in 2012. Recent deep-water oil has given oil companies hope that Morocco’s deep-water cretaceous sandstone, which is geologically analogous, will yield up similar bounty. As a result they are descending upon Morocco in the hope of finding another Ghana, Atlantic Canada or Brazil hydrocarbon treasure trove. Nicholas Newman reports.
Morocco’s oil -
the next Ghana? I
NDEPENDENTS AND THE newly arrived energy majors have announced important exploration and drilling programmes in the past year. This has led Stéphane G Foucaud, analyst at First Energy Capital, London, to forecast the drilling of up to 28 wells ,“nine offshore wells and 19 onshore wells, targeting a combined resource of more than 3.6bn barrels of oil, at a cost of over US$1bn between autumn 2013 and the end of 2014”. “Morocco is currently profiting from an increase in the oil industry’s focus on the North Atlantic Margin - an under explored hydrocarbon province that offers high impact exploration opportunities across multiple play types”, said Simon Boughey, analyst Citi Equity Research. Morocco and its deep water Atlantic margin is “frontier territory” offering 3,500 km of coastline up to 150 km wide with multiple play types. High prices of oil and gas combined with a decline in exploration and development activity in Libya and security concerns in Algeria have increased exploration interest in Morocco. At a cost of US$80mn to drill an average well off the coast of Morocco, “It is worth a punt" said Femi Oso, analyst at Wood Mackenzie. This is not the first time that Morocco has attracted interest. With improved fiscal terms introduced in 2000, the application of modern technologies and success in analogue basins such as West and North Africa, the Gulf of Mexico, and the conjugate Atlantic margin of Canada exploration activity between 2000 and 2011 amounted to around 50 exploration wells drilled, 42 onshore and eight offshore. These wells confirmed the existence of a working petroleum system. This time the gas price is much higher, fiscal terms have improved again and new play concepts are being tested with 3D seismic technology.
Exploration activity The usual business strategy for frontier situations is being repeated in Morocco. First entrants are normally small companies that acquire licences for untested acreage. They do the research and attract partners for the drilling stage. If they strike oil or gas, the large independents, international oil companies or energy majors will buy out the company or fund the field’s development.
Offshore exploration From autumn 2013 through to end 2014 drilling offshore will be focussed in two main areas: near the Atlantic port cities of Casablanca in the North
46 Oil Review Africa Issue One 2014
Kosmos has signed up the Maersk Discoverer for the FA-1 exploraton well in Foum Assaka offshore block in Morocco.
The attractions of Morocco lie in both its underground and above ground features. and Agadir in the south. There is also interest in the waters of Western Sahara and the Mediterranean coasts. Large independents - Cairn Energy, Kosmos Energy and Genel Energy - with a record of accomplishment of finding large oil accumulations in previously under explored areas, have acquired off-shore licences and acreage in the last 18 months, mostly along the Atlantic coast between Western Sahara and the Straits of Gibraltar. They were joined by small independents including
Fastnet Oil and Gas, Chariot Oil and Gas Explorer, Longreach Oil and Gas, drillers and national subsidiaries of international oil companies. These early entrants have been joined by international oil companies including BP, Chevron, Total, and Galp. In January 2013, Anglo-Turkish group, Genel Energy began 3D seismic surveys of two off-shore blocks. The company drilled one well in the fourth quarter of 2013 and will drill three in 2014 for an estimated prospect of 2.4bn barrels of crude according to the company’s Chariot Oil and Gas in April 2013, acquired an interest in the Loukos and Rabat Deep, located offshore northern Morocco. The company aims to conduct 3D seismic surveys during 2014 and initiate a well partnering process in 2015, followed by potential drilling in 2016.
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