British oil and gas exploration, development, and production holding Europa Oil & Gas announced on Wednesday the nonrenewal of its initial license for the exploration of offshore oil in Morocco’s Inezgane after reporting “significant exploration potential.”
Europa CEO Simon Oddie stated that the company had to take the “difficult decision not to progress to the First Extension Period,” after it failed to secure “a farm-in partner” before committing to “drilling an exploration well.”
“We have been working tirelessly with advisors to secure a farm-in partner but the market appetite for offshore deep water oil exploration is currently very low and we have ultimately been unsuccessful,” the executive explained in a press release.
Europa secured the Inezgane license in October 2020, since then the company has carried out numerous sampling campaigns and reported the exploration of over one billion barrels worth of offshore oil.
“During the Initial Period, the technical team identified multiple exploration prospects and as such, we believe that Inezgane has significant potential,” Oddie commented as he thanked Morocco’s hydrocarbon and mines regulatory body (ONHYM) “for the opportunity to work in the region.”
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Europa holds a 75% interest in the offshore site with the remaining shares owned by ONHYM. The site covers an area of 11,228 kilometers squared in the Agadir basin and lies in water depths of 600 meters to 2,000 meters.
Europa is in the final stage of completing its obligations for the Inezgane site and is expected to finalize the relinquishment report soon. Once the procedure is fulfilled, the company expects to receive a bank guarantee of $315,000 (MAD 3.3 million) and shifts its focus to operations in the UK and Atlantic Ireland.
As Europa departs from the Moroccan market, foreign oil and gas companies continue to maintain a strong hold on the exploration of energy resources in the North African country.
Earlier this month, SDX Energy announced the opening of two gas production wells in northern Morocco. Additional wells are expected to be inaugurated over the coming years.
SOURCE: Morocco new
