Uche Cecil Izuora
Morocco is working towards investing $1 billion in oil and natural gas exploration over the next five years through 2031.
The funding plan will help the country to assess its hydrocarbon potential and identify commercially viable reserves, potentially reducing reliance on energy imports, according to Bloomberg’s Asharq Business website report which cited a report by the Moroccan Ministry of Economy and Finance.
Foreign and domestic private-sector companies are expected to account for 91% of the planned investment, alongside the National Office of Hydrocarbons and Mines (ONHYM), the state-owned entity responsible for mineral and hydrocarbon exploration, the report said.
Morocco relies heavily on imported oil to meet domestic demand, as local production remains limited despite years of exploration led by foreign companies.
At the end of 2025, 11 companies were conducting hydrocarbon exploration across 107,000 sq km in Morocco, including 10 onshore and 30 offshore exploration licenses, according to the ministry’s report on the performance of state-owned enterprises, submitted as part of the draft 2027 budget under parliamentary review.
Several natural gas projects are approaching commercial production, including the Tendrara field in eastern Morocco, operated by Moroccan mining company Managem.
Morocco’s annual natural gas consumption is estimated at about one billion cubic meters (bcm), with demand coming primarily from steel plants, the phosphate industry, and power stations. Natural gas volumes transported through the pipeline rose 7.9% in 2025 to about 890.1 mmcm, according to the report.
Morocco is also pursuing the Nigeria-Morocco Atlantic African Gas Pipeline to strengthen energy security and diversify supplies. The proposed 6,800-km pipeline is designed to transport up to 30 bcm of natural gas annually.
It is intended to supply countries in West Africa before connecting to the Maghreb-Europe Gas Pipeline, potentially enabling exports to Morocco and European markets. The project’s estimated cost is $25 Bn.
The Ministry of Economy and Finance said the project reached a key milestone in July with the signing of an intergovernmental agreement among the countries involved. Development is expected to proceed in phases, with initial natural gas supplies targeted for 2031.