Moroccan Hydrocarbons Sector Morocco-UK Trade and Investment Forum - - PowerPoint PPT Presentation

Moroccan Hydrocarbons Sector

Morocco-UK Trade and Investment Forum

27th March 2018

1

• I. Moroccan Energy Strategy
• II. Moroccan Hydrocarbons Sector

III.Cooperation ONHYM-African countries

Plan

2

Family Code “Moudawana” Law on the Transfer of Nationality

• Community Charter
• Press Code
• Law of

parties

• Election

Code Advisory Council

• n Human Rights

(CCDH) Succession Equity and reconciliation instance (IER) Committee

• f Oulemas
• Reform of the

Constitution

• Establishment
• f the

Economic and Social Council Advanced regionalization National Initiative for Human Development (INDH) Central Agency for the Prevention of Corruption New legal and institutional frameworks News Sectoral strategies:

• Energy
• Green plan
• Emergence
• Tourism
• infrastructures

Consumer Protection Act

1997 1999 2001 2003 2005 2007 2009 2011 2013 2015

I-Morocco, a developing country

3

Agriculture Industry Tourism Housing Water Phosphate Infrastructure Energy

SUSTAINABLE DEVELOPMENT I-A growing energy demand

4

I-Multi sectoral growth integrating sustainable development

20 40 60 80 100 120 140 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030

CONSUMPTION IN MILLIONS TEP

2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030

50.000 10.000 20.000 30.000 40.000

18 26 43 15

CONSUMPTION IN TWH

31 52 95 24

Morocco is facing increasing energy needs for the next coming years

Morocco's demand in primary energy :

• x2 by 2020
• x3 by 2030

Morocco's demand in electricity

• x2 by 2020
• x4 by 2030

5

I-Energy strategy in Morocco

Four Strategic Orientations ▪ Diversified mix, optimized by reliable and competitive technology; ▪ Mobilization of national resources; ▪ Energy Efficiency; ▪ Regional integration. Four fundamental objectives ▪ Security of supply and energy availability; ▪ Access to energy at low costs; ▪ Demand management; ▪ Preservation of the environment.

6

MIX ÉNERGÉTIQUE

By 2020 : RE will represent 42% of total capacity

Energy efficiency: 5 % in 2020 and 20% in 2030

• Capacity: 2000 MW
• Inv.: $ 9 Million
• Annual saving: 1Million

TOE / year

• MASEN

Solar

• Construction of 2 550MW

hydropower plants (Mdez EL MENZEL and Abdelmoumen

Hydraulics

• Capacity: 2000 MW
• Inv: $ 3.5 Million
• Annual savings: 1.5

Million TOE / year

Wind

• Thermal power plants

under construction (2010- 2015): 2x500MW

• Complementary projects

1000MW (Gas or clean coal) from 2018

Fossil fuels

Energy Mix

I-Energy Mix

7

I-Moroccan energy model

ZAG

FA-1 SM-1 FD-1 TAO-1

Solar 4560 MW 1 Wind 4200 MW 2 Hydroelectricity 1330 MW 3

20% 20% 12%

8

By 2030 : RE will represent 52% of total capacity 10 100 MW of additional renewable energy capacity by 2030

• Estimated needs at about 5 bcm per

year and power plant feed (3.5 bcm/ year);

• 2700 MW then 3500 MW of combined

cycles;

• Total investment amount: $ 4.5 billion;
• Construction
• f

a LNG port, a regasification plant, combined cycle electric cycles (2,400 MW) and a gas pipeline connecting the gas terminal serving Casablanca, Mohammedia, Kenitra and the northern regions, planned for 400 km;

• A draft law concerning the activities of

the gas sector is being prepared in consultation with the main operators of the sector (public and private).

I-«Gas to Power» project

9

MIX ÉNERGÉTIQUE

32% 40% 32% 20% 11% 5% 16% 25% 24% 11% 5% 3% 10% 15% 18% 20% 2% 14% 16% 20% 22% 14% 13% 12% 2015 2020 2025 2030 Coal Natural gas Fuel Wind Solar Hydroelectricity 8 129 MW 15 946 MW 20 070 MW 24 800 MW + 7 871 + 4 124 + 4 730

I-Morocco, a model for energy transition

10

Proven leadership to support Africa's energy transition

National Rural Electrification Program PERG Energy strategy (energy mix) Know-how in PPP projects Expertise in electrical networks South south cooperation

I-Morocco's success in the energy sector

11

• Conducting research, exploration and exploitation of hydrocarbon deposits or
• il shale , as well as mineral deposits and any mineral substance (excluding

phosphates);

• Promoting and supporting any action to contribute to the development of

exploration and exploitation of hydrocarbons and minerals , particularly in the context of partnerships;

• Provide rich, reliable and accessible databases to any operator regarding soil

and national subsoil, together with documentation on the administrative, financial and legal arrangements ;

• Negotiate with any potential partner, in accordance with the contractual terms

and applicable legal provisions.

90 years of solid expertise

II-ONHYM : A catalyst for hydrocarbons and mining exploration

฀A very extended offshore domain: ฀3 000 km coast line on the Atlantic and 500 km

• n the

Mediterranean sea ฀Large sedimentary basins of several geological and structural types: ฀Total surface area: 918 237 Km² (Onshore & Offshore) consisting of Mesozoic and Cenozoic sedimentary basins. ฀But underexplored: Only 343 wells drilled. ฀Fairly complex structural history since the Middle Jurassic breakup between the North American-African plates ฀Deep objectives have not yet been tested ฀Similar play concepts to Nova Scotia, West Africa and the Gulf of Mexico;

13

II-Hydrocarbon exploration : keys facts

2017 Achieved Objectives 19 Partners of ONHYM on:

• 99 Exploration Permits
• 3 Reconnaissance contracts
• 9 Exploitation concessions

Total area: 170 002,72 Km² 10 ONHYM Partners on:

• 45 Exploration Permits
• 4 Reconnaissance contracts

Total area: 119 556 Km²

14

II-Hydrocarbon exploration Status

2000

15

II-An Attractive hydrocarbon code

฀Share of State interest: 25% maximum. ฀Corporate tax: Total exemption from corporation tax for 10 years. ฀All equipment, materials, products and services required for the work are exempt from customs duties and VAT. ฀Holders of an exploitation concession are exempted from the tax of the patents, the urban tax and the tax on the urban undeveloped land. ฀Tax exemption on the profits and dividends of the holders of an exploitation concession and the shareholders of concessionary companies. ฀Low concession fees:

• Onshore and offshore at less than 200 meters of water depth: Oil 10%,

Gas 5%.

• Offshore at more than 200 meters of water depth: Oil 7%, Gas 3.5%.

2000-2017 2D Seismic Km 93 533 3D Seismic Km² 59 997 Onshore drilling 71 Offshore drilling 15 Total drilling 86

16

II-Seismic acquisition and drilling 2000 - 2017

Basins with proven Petroleum Potential

▪ Gharb offshore:

Repsol made a non- commercial discovery

• f

biogenic gas from Tertiary.

▪ Essaouira onshore:

is a gas & condensate producing area since 1985. Most recent drilling activities revealed new potential zones within the Jurassic.

17

II- Key Achievement : Tangier - Essaouira

MKL- 110 KOBA-1 KAMAR- 1 Mirou-1 Anchois-1 Deep Thon-1

Tanger Rabat Casablanca Marrakech Fes

50 wells drilled leading to 30 commercial discoveries:

Although

• f

small size, they are economically interesting because of the existence, in place, of a network of gas pipelines as well as the proximity of several local industries making theme profitable.

18

II-Key Achievement : Gharb Onshore (2000 – 2017)

LAM-1 ANS-1 MED-1 NFA-1 DAR-1 DRC-1 BBR-1 DNO-1 BTA-1 BFD-1 LTU-1 OZ-1 ADD- 1 BFD-2 SAR-1 DOR- 1 AKR-1 CGD- 13 AMJ-1 DRJ-1 KAB-1 KSR- 16 KSR-A

Rabat

19

II-Key Achievement : Tendrara

▪ Tendrara:

Following the reprocessing and interpretation of 498 Km² of 3D seismic data and an evaluation study, ONHYM and its partner, Sound Energy drilled 3 wells in the Tendrara area, between 2016 and 2017. Two of them discovered gas and condensate in the Triassic and a concession for production is under negotiation.

Figuig

SBK- 1 TE-8 TE-6 TE-5 TE-4 TE-7

Saidia Oujda Fes

15 wells was drilled

• ffshore Atlantic

between 2000 and 2017:

▪

8 wells with oil and gas show and presence of Oil with an API° Ranging from 12 to 26.

▪

2 wells encountered a non-commercial gas and condensate discoveries.

20

II- Key Achievement : Essaouira-Lagouira Offshore

MZ-1 FA-1 SM-1 FD-1 TAO- 1 JM-1 CB-1 SHARK- B1 AMBER-1 RAK-1

Agadir Lâayoune Dakhla Lagouira Marrakech

II- Key Achievement : Essaouira-Lagouira Offshore

21

Tarfaya- Agadir segment

FA-1 SM-1 FD-1 TAO-1 JM-1 AMBER-1 RAK

• 1

Agadir Lâayoune

7 wells drilled within the Agadir

• Tarfaya Atlantic offshore

segment between 2000 and 2017:

▪

3 wells chasing the Jurassic Carbonates in shallow waters , 2 of them confirmed the presence of oil with a 12 API° at JM-1 well and 26 API° at SM-1 Well.

▪

4 wells drilled in deep waters chasing Jurassic and Cretaceous Turbidites. 3 of them encountered oil and gas shows. Thus demonstrating working petroleum Systems.

22

Lâayoune

CB-1

Lâayoune Dakhla Lagouira Boujdour

▪

Within this large area

• f about 200 000 Km²
• nly one well was

drilled up to know in 2014.

▪

This well made a no Commercial discovery

• f gas and condensate

in the Cretaceous Turbidites

Boujdour segment

II- Key Achievement : Essaouira-Lagouira Offshore

฀Important oil shale resources ฀Over 10 oil shale indications located in the Rif, the Atlas and the Southern provinces with two main fields :

• Timahdit:

supplies evaluated at 15 billion barrels of oil;

• Tarfaya: supplies evaluated

at 23 billion barrels of oil. ฀3 MOU: ZONATEC (Russia), GOS (UK) et GENERAL STRADE (Italy).

23

II-Oil shales

฀Regional geology supports

• pportunities

for shale gas exploration and production. ฀3rd largest opportunity in North Africa. ฀4 Basins geologically favorable for shale gas resources accumulations: ฀Bas – Draa- Zag ฀Boudenib & Ouarzazate basins ฀High Plateaux ฀Tadla & Haouz

24

II-Shale gas

Bas Draa- Zag

Souss

Haouz Tadla

Ouarzazate

Boudnib High Plateaux

25

Investments

▪ Geophysical

acquisitions by ONHYM and its partners:

• 3D seismic: 6,865 km².
• 2D seismic: 16 889 km Including 850 Km

acquired by ONHYM alone on the Mesorif ( North of Morocco) and 13 195 Km of 2D multi- client on the Atlantic offshore.

▪ Drilling

• f

six (6) exploration wells by

• ur

partners, three of them are positive.

▪ Signature of 5 new petroleum agreements and 2 new

reconnaissance contracts.

▪ Partners’ investments : 1.242 Million MAD ▪ ONHYM’s investments: 26.87 Million MAD

97% = 1242 million MAD 3% = 26,87 million MAD Partners ONHYM

II-: Petroleum Exploration 2017 : key Achievements

II-ONHYM Alone 2017: Key Achievement

26

1 4 5

Objectives: Studies and promotion Offshore Tangier – Tarfaya :

• Interpretation of 4,800 Km of 2D seismic and 9028 Km² of 3D
• Preparation of promotional material and portfolio of prospects

Objectives: Tarfaya-Lagwira Offshore Studies and Promotion: Interpretation of 4,100 Km of 2D seismic Preparation of promotional material and portfolio of prospects

2

Objectives: Triassic, Jurassic and Cretaceous Mesorif Basin:

• Reprocessing of 500 km of 2D seismic
• Acquisition of 850 Km of new 2D seismic
• Geological and Geophysical Study

3 3 3 3

Objectives: Paleozoic, Jurassic, Cretaceous & Tertiary Lemsid:

• Processing and interpretation of the 456 Km 2D seismic.
• Regional synthesis study

Objectives: Unconventional hydrocarbons: Shale gas and oil shale: Geological and geophysical study and mapping of all Paleozoic Potential intervals , ONHYM achievements in 2017

• Acquisition of 850 Km of 2D seismic,
• Reprocessing of 500 Km of 2D seismic,
• Interpretation of 9 506 Km of 2D seismic and 9028 Km² of 3D seismic

II- ONHYM and Partners : Key Achievements in 2017

27 Repsol (Gharb offshore south): Further processing and interpretation of 1218.5 km² of 3D seismic Chevron / Qatar Petroleum (Cape Cantin and Cape Walidia): Processing and interpretation

• f 4322 km² of 3D seismic data

New Age (Foum Ognit offshore): Acquisition of 999 Km² of 3D seismic Kosmos / Capricorn (Boujdour Maritime): Acquisition of 1745 Km² of 3D seismic. Kosmos (Essaouira offshore): Acquisition

• f 3097Km² of 3D seismic

ENI (El Jadida offshore): Oil potential assessment study and reprocessing of seismic data Chariot (Kenitra offshore): Acquisition of 707 Km² of 3D seismic ENI / Woodside / Chariot Oil (Deep Offshore Rabat): Geological Evaluation and Selection of the Prospect for Drilling Chariot (Mohammedia offshore): Acquisition of 2246 Km of 2D seismic and 317Km² of 3D seismic

Offshore area Onshore area

Sound Energy (Tendrara): Drilling of the TE-8 well. Acquisition of 11168.60 km

• f Aero-Gradiometric

coverage and 598 km of 2D seismic Sound Energy (Anoual): Acquisition of an Aero- Gradiometric coverage of 11080.80 Km. PEL / Forpetro (Haha

• nshore): drilling Tamanar-2

well

Achievements of ONHYM and Partners in 2017

• Acquisition of 26,817.82 km of Aero-Gradiometric coverage
• Acquisition of 2,844 of 2D seismic and 6,865.13 km² of 3D seismic
• Drilling 6 wells ;three are positive (Gharb)

SDX Energy (Central Sebou & Western Rharb): Drilling of 4 wells ;KSR-14, KSR-15, KSR-16 ELQ-1; Sound Energy (Matarka): Acquisition of an Aero- Gradiometric Coverage of 4568.42 Km

II-Drilling results in 2017

28

Partner Permit Well Results Sound Energy Tendrara Lakbir TE-8 ( Tendrara-8) Gas show PEL/Forpetro Haha Nord –Centre- Sud Tamanar-2 Gas show SDX Energy Sebou Central KSR-14 (Ksiri-14) Gas discovery KSR-15 (Ksiri-15) Gas discovery KSR-16 (Ksiri-16) Gas discovery ELQ-1 (Elqodia-1) Dry well

II-ONHYM: 2017 promotion achievements

29

Exploration Permits Reconnaissance Licenses Sound Energy (Matarka) ENI (El Jadida Offshore SDX Energy (Rharb Occidental) ENI (Tarfaya Offshore Shallow) SDX Energy (Sebou Central ) Sound Energy (Anoual) Chariot Oil &Gas (Kenitra Offshore )

II-Partner achievements in 2016-2017 and 2018 forecast

30

2016 2017 2018 2D seismic (km) Acquisition /Processing

• 2 844

2 330 3D seismic (km²) Acquisition / Processing 5 540,5 6 865 10 595 Drilling Exploration Wells 02 06 06

II-2000-2017 ONHYM & Partners investment

31

1,000 2,000 3,000 4,000 5,000 6,000 7,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 51 39 30 58 85 44 48 78 93 46 62 42 37 33 34 38 118 27 531 378 585 278 1,210 304 572 429 800 1,512 715 1,497 1,122 2,751 6,050 3,182 1,120 1,242

ONHYM Partenaires

ONHYM and its Partners investments, between 2000 and 2017, reached 25,2 billion MAD 96% of which are supported by the partners.

MILLIONS DH

II-Promotion Effort in 2017

32

ONHYM at conferences: ▪ Annual NAPE Summit, APPEX, AAPG; International Exhibition

• f

Energy and Oil in Africa; EAGE Conference & Exhibition; Africa Assembly, 22nd World Petroleum Congress; Tunisia Oil & Gas Summit, Africa Upstream and

• rganizing

a door-to-door promotion campaign in Houston. Technical presentations and Data Rooms made to 7

• il

companies visiting ONHYM

III-Cooperation ONHYM-African countries

• SOGUIPAMI
• ONAP
• DNGM
• AUREP
• SEM
• OMRG
• SMH
• PETROSEN

MADAGASCAR

• OMNIS
• NGSA
• DGS
• MINERALS

COMMISSION

• MINISTRY OF MINES

AND MINERAL DEVELOPMENT MALI GUINEA CONAKRY GABON MAURITANIA SENEGAL NIGERIA SOUTH SUDAN GHANA ZAMBIA

ONHYM has signed 13 cooperation agreements with 10 African countries

34

III-Cooperation ONHYM-African organizations

Purpose of agreements ▪ Scientific and technical cooperation; ▪ Training actions in the various disciplines of oil and mining exploration and management; ▪ Potential participation of both Parties in mining, oil and gas projects. ONHYM’s Building Capacity Manual ▪ Theme I: Mining Exploration and Mining Asset Management; ▪ Theme II: Oil Exploration and Hydrocarbon Asset Management; ▪ Theme III: Functional management (project management, accounting and finance, GIS, document management, legal monitoring).

35

III-Purpose of agreements

Structuring project allowing: ฀Accelerating West African Access to Energy ฀Accelerating electrification projects for the benefit of populations ฀Creation of a competitive regional electricity market ฀Exploitation of clean energy ฀Contribution to the industrial and economic development of all countries crossed. ฀Emergence of an integrated North-West African zone

36

III-Morocco-Nigeria pipeline

“A Royal Will and Vision for Africa's Industrial and Energy Developments”

CONCLUSIONS

What Morocco has to offer? ฀Dynamic energy sector; ฀Growing local energy demand; ฀Huge opportunities of investment; ฀Favourable and attractive terms of hydrocarbons law; ฀ An easy place to operate; ฀A gateway to Africa , Europe and Middle East; ฀An exciting future…

37