Israel’s NewMed Energy has signed a deal with Morocco’s energy and mining ministry and Adarco Energy for offshore natural gas exploration and production. This is a significant step forward for NewMed, which has been working to establish a presence in the Moroccan energy market. The company is hopeful that this deal will help it to secure a long-term foothold in the country.
The agreement will see NewMed explore for natural gas off the coast of Morocco. If successful, the company will then be able to produce and sell the gas to the Moroccan market. This is a valuable opportunity for NewMed, as Morocco is a growing market for natural gas.
For a long time now, we have recognised a huge potential in Morocco for collaborations in both the natural gas and renewable energy sectors. NewMed CEO, Yossi Abu, made a statement saying that they are looking to establish new partnerships in these areas in order to help the country reach its full potential.
Morocco has great potential for renewable energy due to its sun and wind resources, and its natural gas reserves could help to meet the country’s growing energy demand. With the help of foreign investors and partners, Morocco can continue to develop its energy sector and make progress towards its goals of becoming a more sustainable and developed nation.
NewMed, a consortium of French energy companies, has been awarded a 37.5 per cent stake in the Boujdour Atlantique licence by the Algerian government, with the remaining 25 per cent held by the Algerian Ministry of Energy.
The licence covers an area of 4,250 square kilometres offshore Boujdour, in southwestern Algeria. The consortium plans to carry out exploration activities over a three-year period, with the aim of developing a natural gas field to supply the Algerian market.
The Boujdour Atlantique licence is based in the southern part of Morocco’s offshore economic zone and was granted for eight years, the company added. The licence is in an area containing several large reservoirs of natural gas, which the company plans to extract and export.
The agreements between the two countries are not yet finalised, but would enable joint geological and geophysical analyses, with the eventual possibility of exploratory drilling by mid-2025. Both Morocco’s Ministry of Energy Transition and Sustainable Development and Ministry of Finance must give their approval before the agreements can be put into effect. If everything goes according to plan, the analysis and drilling could yield important information about the potential for oil and gas reserves in the area. Ultimately, this could lead to increased energy security for both countries.
In December 2020, Israel and Morocco agreed to resume diplomatic relations, which had been suspended since 2000. This makes Morocco the fourth Arab country to normalise relations with Israel, after the UAE, Bahrain, and Sudan. The Palestinians have long opposed any normalization of relations with Israel, arguing that it legitimizes the occupation of Palestinian territory. However, Morocco has taken a more pragmatic approach, seeing the potential benefits of closer ties with Israel.
Moroccan bodies and parties have categorically rejected the normalisation of relations with Israel and held numerous protests against the move. This is in light of the ongoing illegal occupation of Palestinian territories by Israel, which has been condemned by the international community. The Moroccan people stand in solidarity with the Palestinian people and their right to self-determination and freedom.
This story was edited by Ericson Mangoli