Morocco's Strategic Investment in Hydrocarbon Exploration
Morocco is embarking on a significant initiative to bolster its energy independence by investing approximately MAD 9.21 billion (around $1 billion) in oil and natural gas exploration over the next five years, extending through 2031. This ambitious plan aims to thoroughly assess the nation's hydrocarbon potential and pinpoint commercially viable reserves, thereby reducing its heavy reliance on energy imports. As reported by Bloomberg’s Asharq Business, this move was detailed in a recent announcement from the Moroccan Ministry of Economy and Finance on October 26, 2026.
The investment strategy is primarily driven by both foreign and domestic private-sector companies, which are expected to contribute approximately 91% of the total funding. The National Office of Hydrocarbons and Mines (ONHYM), Morocco’s state-owned entity responsible for mineral and hydrocarbon exploration, will also play a crucial role in facilitating this significant investment. Currently, despite extensive exploration efforts by foreign companies, Morocco's domestic oil production remains limited, making this exploration initiative all the more critical for the country's energy security.
Progress and Future Prospects in Natural Gas Production
As of the end of 2025, Morocco had 11 companies engaged in hydrocarbon exploration across a vast area of 107,000 square kilometers, which includes 10 onshore and 30 offshore exploration licenses. This information was highlighted in a report on the performance of state-owned enterprises, which is part of the draft budget for 2027 currently under parliamentary review. Among the notable developments, several natural gas projects are nearing commercial production, notably the Tendrara field located in eastern Morocco, which is operated by the Moroccan mining company Managem.
Morocco’s annual consumption of natural gas is estimated at around one billion cubic meters (bcm), with primary demand stemming from industrial sectors such as steel manufacturing, the phosphate industry, and power generation. The volume of natural gas transported through pipelines has seen a notable increase, rising by 7.9% in 2025 to approximately 890.1 million cubic meters. To further enhance energy security and diversify its supply sources, Morocco is also pursuing the ambitious Nigeria-Morocco Atlantic African Gas Pipeline project. This proposed 6,800-km pipeline is designed to transport up to 30 bcm of natural gas annually and aims to supply countries throughout West Africa while eventually linking to the Maghreb-Europe Gas Pipeline, thereby enabling potential exports to both Moroccan and European markets. The estimated cost of this grand project stands at $25 billion, and significant progress was made in July with the signing of an intergovernmental agreement among the participating nations. Development is projected to occur in phases, with initial natural gas supplies anticipated by 2031.
As reported by egyptoil-gas.com.
