Signature of an 8-year gas agreement

The Israeli companies NewMed Energy and Adarco have announced the signing of an agreement with the Ministry of Energy Transition and Sustainable Development to carry out natural gas exploration and production operations under the Boujdour Atlantique exploration permit, located off the coast of Morocco on a gas field extended over an area of ​​33812km².

The signed document specifies that the total duration of operation will be eight years. In detail, NewMed Energy and Adarco Energy will each hold 37.5% of the Boujdour Atlantique offshore permit, with the National Office for Hydrocarbons and Mines (ONHYM) retaining the remaining 25%, the same source points out. The 8-year exploration license is for “Boujdour Atlantique”, which is located south of Morocco’s offshore economic zone.

It includes prospects for natural gas and oil discoveries. According to the planned work plan, a geological and geophysical analysis will be carried out and the first exploration drilling is planned after approximately two and a half years from the date of granting the license. These agreements, as we imagine, are subject to the approval of the Ministry of Energy and Sustainable Development and the Ministry of Finance and the Economy, as well as that of the general assembly of NewMed Energy.

In this regard, the CEO of NewMed Energy, Yossi Abou declared on the occasion that ” Today’s announcement will make NewMed Energy the leading energy entity in the Eastern Mediterranean and North Africa region. There is huge potential in the natural gas and renewable energy sectors in Morocco and we are excited to expand into alternative energy overseas. “.

Speaking at the COP27 climate conference in Sharm El Sheikh last month, Yossi Abou reiterated his interest in Egypt and Morocco as ” basis for the production of green hydrogen “. The signing of the agreements comes after NewMed, formerly Delek Drilling (founded in 1993 and part of Yitzhak Tshuva’s Delek Group), announced in August a joint cooperation with Enlight Energy to promote renewable energy projects in the Middle East. East and North Africa, including countries with which Israel has no formal diplomatic ties.

The partners said at the time they were studying renewable energy markets in the United Arab Emirates and Bahrain – both signatories to the Abraham Accords – as well as oil giants in the region. Enlight and NewMed sought to focus on projects related to solar power, wind power, and energy storage projects.

NewMed is also a key stakeholder in Israel’s Leviathan off the Mediterranean coast and has participated in the development of the Tamar, Karish and Tanin natural gas fields. Last month, Israeli hydrogen company H2Pro and Moroccan renewable energy developer Gaia Energy signed a strategic agreement for the supply of green hydrogen.

Morocco is working on the preparation of an atlas on the oil potential of the Atlantic Ocean, while updating the reference documents of the file submitted by Morocco to determine its Atlantic continental shelf.

In the offshore zones, Amina Benkhadra, general manager of ONHYM, indicated that the company “Charriot Oil and Gas” will prospect and process the Rissana offshore zone. Morocco also aims to set up an infrastructure to obtain competitive energy in the production of electricity for the benefit of the industrial sector.

After the announcement by the Algerian authorities to stop gas supplies, the Kingdom is studying a project to activate in Larache and Mohammedia, the option of “floating storage and regasification units”, which is a technology that is mainly based on ships to transport and store liquid gas before delivering it to the consumer market.

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