Clifford Chance
Oil and Gas Regulation in Morocco: one of the most attractive schemes in the world
18 March 2014
The Oil and Gas sector is regulated by the Hydrocarbon Code. These regulations are relatively recent and operators benefit from many incentive measures aiming at stimulating domestic natural resources development.
The Moroccan authorities have succeeded in attracting equity from foreign investors in order to expand exploration on the ground.
The recently signed Petroleum Agreements with large energy companies are symptomatic of the dynamic environment of the Oil and Gas Sector in Morocco.
Introduction
The law n° 21-90 dated 1 April 1992 as amended by law n° 27-99 dated 15 February 2000 related to the exploration and exploitation of Oil and Gas deposits (the "Hydrocarbon Law") is the legislative source regulating the Oil and Gas Sector in Morocco. It is supplemented by applicable decrees (Decree n° 2-93-786 dated 3 November 1993 as amended by Decree n° 2-99-210 dated 16 March 2000) (the "Hydrocarbon Decree"). The Hydrocarbon Law and the Hydrocarbon Decree constitute together the "Hydrocarbon Code".
Oil and Gas in Morocco (and the subsoil in general) are state-owned property. As a result, the State controls all Oil and Gas activities (exploration and exploitation) in Morocco. In Morocco, the public body in charge of exploring, developing and exploiting hydrocarbons, ensuring the transportation of their production and promoting the exploration and exploitation of hydrocarbons is the Office National des Hydrocarbures et des Mines ("ONHYM").
