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Reconnaissance Licence

  • Granted by decision of Ministry in charge of Energy, upon the conclusion of a reconnaissance Contract (specifying terms: validity period, area, etc.);
  • Once the reconnaissance works are performed, the parties may decide to begin exploration works. In this case, a petroleum agreement sets out the respective rights and obligations of the parties.
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Exploration permit

  • Following the signature of the petroleum agreement between ONHYM and the petroleum company, a joint permit application is filled;
  • An Association Contract (a joint operating agreement) is signed concurrently with the Petroleum Agreement, to organize relationships between the parties;
  • The Minister in charge of Energy “MEM” grants exploration permits through a ministerial order within 60 days of the application filling date.
  • The Petroleum Agreement is approved by joint order of the MEM and Minister in charge of finance (MF);
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Exploitation concession

  • In case a hydrocarbon discovery is made that unveils commercially exploitable quantities, the holders of the exploration permit are entitled to request an exploitation concession relating to the deposit so discovered, provided that all contractual and technical obligations are performed;
  • The concession is awarded by Decree of Prime Minister following approval of the request by the MEM.
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Entry requirements

  • Pursuant to the Hydrocarbon Code, any petroleum company may conduct reconnaissance, exploration and exploitation activities in Morocco. Such petroleum company must evidence its technical and financial capabilities to carry out the exploration works agreed with ONHYM and undertake to fulfil a minimum work program with a corresponding financial commitment;
  • Moroccan legislation and regulations apply equally to both local and foreign companies.

LICENCING PROCESS FLOW CHART

DATABASE CONSULTATION INTEREST CONFIRMATION
AREA OF INTEREST DELIMITATION WORK PROGRAM NEGOTIATION RECONNAISSANCE CONTRACT NEGOTIATION AND FINALISATION RECONNAISSANCE CONTRACT SIGNATURE APPLICATION FOR RECONNAISSANCE LICENSE RECONNAISSANCE LICENSE GRANTING BY MEM DECISION
WITHDRAW
APPLICATION FOR EXTENSION ADDENDUM NEGOTIATION AND SIGNATURE
DECISION TO TRANSITION TO THE PETROLEUM AGREEMENT
AREA OF INTEREST DELIMITATION WORK PROGRAM NEGOTIATION PETROLEUM AGREEMENT DRAFT NEGOTIATION AND FINALISATION PETROLEUM AGREEMENT DRAFT TRANSMISSION TO MEM AND MF (For in Principal Approval) PETROLEUM AGREEMENT FINALISATION AND SIGNATURE EXPLORATION PERMITS APPLICATION INTRODUCTION PETROLEUM AGREEMENT APPROVAL BY MEM AND MF JOINT DECISION PERMITS GRANTING BY MEM DECISION
WITHDRAW
ENTRY INTO EXTENSION PERIOD
CONCESSION APPLICATION INTRODUCTION CONCESSION GRANTING BY DECREE OF PRIME MINISTER DEVELOPMENT WORKS EXECUTION AND START OF OPERATIONS Well abandonment and area reinstatement Or Return to the State

MINING TITLES MAIN TERMS

Reconnaissance License Exploration permit Exploitation Concession
Duration 1 Year
Renewable		 8 years
divided in Two or three periods		 25 years
extension of 10 years
Work Program G&G G&G - SEISMIC ACQUISITION
Exploration and appreaisal wells		 Development and production wells
Acreage ....

Permit Acreage: 200 SQ.KM min 2000 SQ.KM max

Acreage by permit holder : 10 000 SQ.KM Max Onshore & 20 000 SQ.KM Offshore max

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Government Share N/A 25% 25%