The government of Morocco has recently agreed to explore the possibility of establishing an offshore oil and gas industry with UAE’s Mubadala Petroleum Company, a subsidiary of Abu Dhabi’s state-owned Mubadala Development Company.
The Atlantic coastline has previously been the focus of energy company exploration; now, the plan is to explore an area of 3,433 square kilometres. This is just part of the new energy plan that Morocco has started to put into action.
Morocco has identified the need to focus on creating a larger domestic energy industry, so besides increasing its domestic oil production, it has also made efforts to use renewable energy alongside oil for a more sustainable future. Morocco currently imports the majority of its oil, and although it sees oil as an important part of its energy future, the country hopes to use renewable energy for at least 42% of its energy needs within the next five years.
Interest from the larger Mubadala Development Company has encouraged smaller oil companies, such as San Leon Energy and Longreach Oil and Gas, to pursue offshore oil exploration efforts. Despite low current oil prices, global demand is high and new wells are essential to meet the energy needs of the world.
Oil companies hope to have found and started to establish at least 10 wells within the year, and it is expected that other firms may join in the quest for oil as events unfold.