Morocco boosts energy investment with 2.6 billion dirhams for mining and hydrocarbons

Morocco continues to focus a large part of its investments on the energy sector. Despite its great commitment to development through renewable energies, the Alawi kingdom does not neglect mining, which, as the new report published by the Ministry of Economy and Finance has revealed, will have an important allocation to make further progress in this field.

The intention is that the National Office of Hydrocarbons and Mines will benefit from an investment of 2.6 billion dirhams - just under 240 million euros. This is indicated in the report on public establishments and public enterprises (EEP) that accompanies next year's draft finance law (PLF 2024). The same document further raises the investment for 2025, which, if it goes ahead as planned, would amount to more than 3.5 billion dirhams (more than 320 million euros). 

It is intended to allocate a large part of the investment to projects such as the "development of the Tendrara operating concession, the maintenance of the Maghreb-Europe (GME) gas pipeline, the Office's participation in the Nigeria-Morocco gas pipeline and the development of the MKL-110 (Meskala) gas well".

In terms of turnover, the published figures are also great news for Rabat. Compared to last 2022's figures, it has grown by 42%, a rise also driven by the increase in energy demand worldwide. It is therefore seen as an opportunity to continue to evolve in this sector and to continue to take advantage of the infrastructure that already exists in the country, and which is intended to be expanded in the coming years. 

The National Office of Hydrocarbons and Mines also assures that it intends to "continue to make considerable efforts to support its strategic partners in the realisation of their investment programmes". In addition, one of the objectives is to attract foreign investors to the country and to boost the "exploitation of Morocco's sedimentary basins". As a result, the Kingdom could continue to boost investment in this field, as well as in the aforementioned field of green energy.

It is important to mention this aspect since, far from considering them incompatible, Rabat sees the future as largely driven by hydrogen, but without leaving other sources aside. This is why the compatibility of the two is viewed so favourably, and thus provides a much wider margin for growth.