LONDON: Oil companies are stepping up exploration in Morocco, attracted by its stability relative to other parts of North Africa and encouraged by advances in geology and technology that indicate its potential for reserves offshore.
Independent explorers have snapped up rights to explore offshore blocks over the past 18 months, and they are now making way for big players seeking acreage in a nation once dismissed as the energy-poor neighbor of OPEC members Algeria and Libya.
Damon Neaves, managing director of Australia’s Pura Vida Energy, said 10 exploration wells would be drilled off Morocco in the next 12 to 18 months, compared with only nine since 1990, according to analysts’ estimates.
“That represents an investment of $500 million to $1 billion, and that is a big show of confidence from the industry,” Neaves said.
“It is still a frontier region and is under-explored compared to other parts of the world.”
BP is the latest oil major to enter Morocco, announcing a deal with Kosmos Energy this week to take a share in three offshore blocks.
Drilling will begin next year.
Britain’s Cairn Energy said it would shortly begin drilling off the Moroccan coast.
They follow Chevron, the second-largest US oil company, which said in January it had taken up three offshore blocks.
By contrast, some oil firms have recently turned away from Libya due to disappointing finds and supply disruptions and from Algeria, where security concerns have mounted since an attack on a gas plant this year killed 40 workers.
“North Africa and particularly Libya and Algeria are looking less appealing than they have done for five years,” Geoff Porter, founder of North Africa Risk Consulting, said.
“Conversely, Morocco is a quiet hive of activity.”
Pura Vida this year found a partner for its Mazagan block. Drilling is to begin next year on the Toubkal field, which it hopes could hold over 1 billion barrels of oil.
Excitement over Morocco has grown as technology has helped firms to discover new oil and gas fields over the past decade in regions that were formerly overlooked.
Huge finds deep under the seabed off Brazil’s coastline have raised hopes that similar hydrocarbon formations lie unexploited off the African coast. Early finds offshore countries including Ghana and Angola have further piqued the interest of majors with deep-water experience.
“We look at the Atlantic margin as a whole,” BP spokesman Robert Wine said. “If you look at Angola and Namibia then you can see a geological mirror to Brazil and Uruguay ... Morocco is obviously a bit further north.”
Oil companies also are encouraged by Morocco’s relatively attractive fiscal terms and its infrastructure, including port and rail facilities.
That contrasts with Libya, which has some of the toughest terms in the business, and Algeria, which struggled to attract foreign bidders in its last licensing round.
“The fiscal terms in Morocco are as good as you’ll find anywhere in the world,” said Neaves. “If you compare a barrel of oil in the ground in Morocco, then it is worth more than it is just about anywhere in Africa.”
Significant finds could help ease political pressures on Morocco’s government as it raises fuel prices as part of reforms demanded by an International Monetary Fund program.
Morocco is one of the world’s most energy-poor countries, importing around 95 percent of its needs, according to the World Bank.
It has turned to Wall Street banks to hedge against oil price hikes, the Financial Times said this month.
The government also aims to attract investment in renewable power to help meet domestic electricity consumption that is rising by around 6 percent a year, so that any potential oil and gas output can be used to generate export revenue.
Such a strategy has been employed by Norway, a major energy exporter that uses dams to generate hydropower and provide most of its electricity.
Funds from the Middle East, Europe and the World Bank are being invested in projects such as the world’s largest concentrated solar power plant in Ouarzazate, in eastern Morocco.
“The plant is part of the Moroccan government’s Solar Plan ... This replaces the high-carbon, coal-fired electricity of the past and will create a new source of income for Morocco, as the plan calls for export of solar electricity to markets in Europe,” the World Bank said.
But there are potential pitfalls for those oil firms whose blocks fall in the disputed waters off the Western Sahara to the south of Morocco.
This tract of desert, home to phosphate deposits and potential offshore energy reserves, has been the focus of Africa’s longest-running territorial dispute, pitting the Moroccan government against the Polisario Front independence movement backed by Algeria.
Campaigners set up Western Sahara Resource Watch over a decade ago after Morocco awarded its first exploration licenses in disputed waters. WSRW says it wants oil firms to comply with a UN legal opinion from 2002 that calls for activities to respect the wishes and interests of the Western Sahara people.
It has in the past appealed to shareholders of firms operating in disputed areas to divest or halt exploration.
Analysts say most of the blocks snapped up so far are not in disputed waters and would face no legal or political challenge.
But it will take time to develop the energy sector, even if companies do strike oil.
“Morocco does look attractive, but they have not found any major oil and gas deposits yet. Algeria is already one of the largest suppliers of gas to Europe,” Charles Gurdon, managing director at Menas Consulting, said.
“Morocco is at least a decade away from anything like that, and that is even if they find it.”
Oil majors step up exploration in Morocco’s Atlantic waters
Oil majors step up exploration in Morocco’s Atlantic waters
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Oil Updates — prices edge higher on Kazakhstan supply disruption
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RIYADH: Brent crude oil prices advanced on Tuesday, adding to gains in the previous session after a drone attack on an oil pipeline pumping station in Russia reduced flows from Kazakhstan, but gains were capped on the prospects of supply rising soon, according to Reuters.
Brent crude futures gained 15 cents, or 0.2 percent, to $75.37 per barrel at 07:54 a.m. Saudi time. US West Texas Intermediate crude futures were up 67 cents from Friday’s close at $71.41 a barrel. There was no settlement for WTI on Monday due to the US Presidents’ Day holiday.
“The overriding theme driving oil prices lately has been around supply expectations. With the weakness in prices over the past weeks, news of a drone strike on Kazakhstan’s export pipeline in Russia has provided the catalyst for some bearish sentiment to unwind,” IG market strategist Yeap Jun Rong said in an email.
The drone strike on the Kropotkinskaya station in Russia’s southern Krasnodar region reduced shipments from Kazakhstan to world markets by Western firms including Chevron and Exxon Mobil, operator Caspian Pipeline Consortium said on Monday.
The Black Sea CPC Blend oil loading plan for February would remain unchanged, two sources familiar with the plan told Reuters.
“However, longer-term gains are likely to remain capped as the market may anticipate higher supplies from OPEC+ and Russia further down the road, while improvement in demand outlook particularly from China still remains uncertain, going by recent economic data,” IG's Yeap said.
BMI analysts said in a note that they see Brent prices averaging $76 a barrel in 2025, down 5 percent from the 2024 average, because of market oversupply, tariffs and trade tensions.
OPEC+ producers are not considering delaying a series of monthly oil supply increases scheduled to begin in April, according to a Russian state media report.
In December, OPEC had pushed back a plan to begin raising output to April, due to weak demand and rising supply outside the group.
Markets were also waiting to see if Russia-Ukraine peace talks will bear fruit, as US and Russian officials meet for talks in Saudi Arabia later on Tuesday.
“There is seemingly plenty to be bearish about in the crude market, the biggest factor now being the outcome of Ukraine negotiations. Russian oil may partially come back to the legitimate market, though there are of course many permutations as to the end result here,” said Sparta Commodities analyst Neil Crosby.
Saudi minister highlights strong ties as Kingdom and Egypt sign energy efficiency deal
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- Prince Abdulaziz bin Salman says joint initiatives will enhance regional energy security, sustainability
- Saudi companies to launch 5 new solar and wind energy projects in Egypt as part of collaboration
CAIRO: Saudi Arabia’s Minister of Energy, Prince Abdulaziz bin Salman, reaffirmed the Kingdom’s commitment to strengthening energy cooperation with Egypt during his address at the Egypt Energy Show on Monday.
The minister was speaking after the signing of an executive plan between Saudi Arabia and Egypt aimed at enhancing cooperation in the field of energy efficiency.
Under the executive plan, both countries will work together to establish a national energy efficiency program in Egypt, which will include drafting regulations and technical standards, capacity building, raising awareness, and fostering the development of energy service companies.
Prince Abdulaziz emphasized the brotherly relationship between Saudi Arabia and Egypt, saying that both nations share a responsibility to lead the transformation of the energy sector and adding that the collaboration aligned with Saudi Vision 2030 and Egypt’s strategic energy transformation goals.
In his address, the minister thanked Egypt’s leadership and its role in fostering robust relations between the two nations, and he highlighted the several major joint energy initiatives announced on Monday as ways of enhancing regional energy security and sustainability.
As part of the collaboration, five new solar and wind energy projects will be launched in Egypt by Saudi companies, boasting a combined capacity of 1.696 gigawatts and an investment of about SR6.2 billion ($1.65 billion).
The projects will be developed by ACWA Power, Alfanar, FAS, and MOWAH.
Additionally, ACWA Power has signed a power purchase agreement with the Egyptian Electricity Transmission Company for a 2GW wind energy project in South Hurghada.
With an investment of SR8.6 billion, the initiative is set to become the largest wind energy project in Egypt, further advancing the country’s renewable energy ambitions.
The Saudi-Egypt Electricity Interconnection Project was also highlighted as a significant step toward regional cooperation, with a SR6.7 billion investment and the ability to exchange 3,000 MW of electricity between the two nations once completed.
Saudi wealth fund’s SURJ Sports Investment acquires minority stake in DAZN
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RIYADH: SURJ Sports Investment, the sports arm of the Public Investment Fund, has acquired a minority stake in DAZN to broaden broadcasting opportunities and enhance access to both live and on-demand sports content.
This strategic investment aims to support the growth of Saudi Arabia’s sports sector while bolstering DAZN’s presence in the Middle East and other key markets, according to an official statement released on Monday.
As part of the deal, SURJ and DAZN will launch DAZN MENA, a joint venture designed to elevate sports broadcasting capabilities across Saudi Arabia and surrounding markets.
“This investment is in line with SURJ’s mission to drive fan engagement, boost sports participation, and unlock transformative opportunities, all while positioning the region as a hub for world-class sports,” said Danny Townsend, CEO of SURJ Sports Investment.
The collaboration is set to accelerate the growth of the broader sports sector by enhancing fan engagement and supporting initiatives that encourage sports participation.
“As part of the DAZN MENA joint venture with SURJ, DAZN is committed to expanding sports access and delivering an unparalleled entertainment experience to a global community of passionate fans,” added Shay Segev, CEO of DAZN.
Earlier in January, SURJ entered into a strategic partnership with US-based Enfield Investment Partners. This collaboration is focused on co-investing in global sports properties, including teams, leagues, media rights, and infrastructure. Enfield launched a $4 billion global sports asset fund and will establish a presence in SURJ’s Riyadh offices to support mutual growth and objectives.
Founded in 2023, SURJ Sports Investment is dedicated to international sports investments and advancing Saudi Arabia’s sports ecosystem. Its strategy encompasses investments in broadcasting, digital platforms, grassroots initiatives, and fan engagement.
Through this partnership, DAZN will serve as a key streaming and broadcasting partner for Saudi sports, significantly expanding their reach to a global audience. Operating in over 200 markets, DAZN has built a platform that integrates live sports streaming with interactive digital experiences.
The agreement with SURJ is expected to usher in new broadcasting technologies and further expand the accessibility of sports media in the region.
Saudi Arabia unveils $7.7bn mining investments in Wa’ad Al-Shamal
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RIYADH: Saudi Arabia’s mining sector is poised for a major boost with nearly SR29 billion ($7.7 billion) in investments being directed toward the city of Wa’ad Al-Shamal.
Prince Faisal bin Abdulaziz, governor of the Northern Borders region, inaugurated a series of industrial, developmental, and hospitality projects aimed at solidifying the city’s role as a major hub for the Kingdom’s mining industry.
A major highlight of the announcement was the launch of Ma’aden’s Phosphate 3 project, backed by the Shareek program and an investment of SR28 billion.
This initiative is set to increase Saudi Arabia’s phosphate production capacity to 9 million tonnes annually, building upon the existing Phosphate 1 and Phosphate 2 projects, each producing 3 million tonnes. This expansion is expected to bolster the country’s industrial supply chain, generate new investment opportunities, and create employment within the sector.
The governor emphasized that these projects align with Saudi Vision 2030, which aims to expand the mining sector’s contribution to the national economy.
He highlighted that Wa’ad Al-Shamal has transformed into a model for integrated industrial cities, combining major industries, logistics services, and modern residential communities, which enhance its appeal to both local and international investors.
The event was attended by Minister of Industry and Mineral Resources Bandar Alkhorayef, Deputy Minister for Mining Affairs Khalid Al-Mudaifer, and other key officials from both the public and private sectors.
Additionally, the Saudi Authority for Industrial Cities and Technology Zones launched several new industrial, logistical, and service projects, with investments exceeding SR550 million. These projects include infrastructure development in the industrial zone, which spans 4.3 million sq. meters. As part of this initiative, 32 ready-built units have been established, consisting of 20 pre-built factories and 12 support units covering a combined area of 45,000 sq. meters.
Further key developments include a 132 kilovolt, 200 megavolt-amperes power substation, overhead transmission lines, and a 7-km bridge connecting the industrial zone to the international highway. These projects aim to improve logistics and energy reliability, creating an attractive environment for investments, particularly in the phosphate industry.
In addition, the governor inaugurated the expansion of Ma’aden’s residential city in Wa’ad Al-Shamal, adding 96 new residential units. This brings the total number of housing units to 579, supporting industrial and mining sector employees and their families.
To complement the region's infrastructure improvements, the Movenpick Wa’ad Al-Shamal Hotel, developed with an investment exceeding SR500 million, was officially opened. The five-star hotel is designed to cater to the growing accommodation demand from workers, investors, and visitors to the industrial city and Northern Borders region, further enhancing Wa’ad Al-Shamal’s position as an integrated industrial and investment hub.
As part of broader efforts to advance the mining sector, Alkhorayef, along with the deputy minister for mining affairs and other officials, visited several industrial and developmental projects in Wa’ad Al-Shamal and the Northern Borders region.
The tour included a visit to the Scientific Excellence School in Arar, where the minister reviewed modern training laboratories and met with students and faculty. Established through a partnership between Ma’aden and the Ministry of Education with an investment of approximately SR180 million, the initiative seeks to promote scientific education and develop expertise in STEM fields.
The minister also toured the Saudi Technical Institute for Mining in Arar, which has trained over 1,081 students, including 52 female graduates, in a range of specializations such as underground and surface mining, mining operations, and mechanical and electrical maintenance. Equipped with advanced mining simulation and training facilities, the institute plays a pivotal role in workforce localization and preparing Saudi talent for the mining industry.
The tour also included a visit to the Hazm Al-Jalamid mine, one of the Kingdom’s key phosphate mining sites, producing more than 11 million tonnes of phosphate ore annually.
The Northern Borders region is home to extensive mineral resources valued at approximately SR4.669 trillion.
It is a major source of phosphate, a critical element in global food security due to its role in agricultural fertilizer production. The region also contains high-quality deposits of coal, dolomite, limestone, and silica sand. It currently holds five phosphate ore reserve sites and 29 active mining licenses, including 15 for building materials and 14 for mineral extraction.
Big 5 Construct forum fuels Saudi Arabia’s $1.7tn projects’ pipeline
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- Two-week event showcases industry-leading discussions, strategic deals and innovative technologies, showcases key innovations
- Masdar signs partnership with Public Investment Fund; PIF acquires a 30% stake in Masdar
RIYADH: Big 5 Construct Saudi 2025 returned for its 13th edition in a groundbreaking two-week format, running from Feb. 15— 18 and 24— 27 at the Roshn Front in Riyadh.
The expansion aligns with the Kingdom’s construction boom, driven by Vision 2030 and a $1.7 trillion pipeline of mega and giga-projects.
The event was inaugurated by Mohammed Abdulaziz Al-Ajlan, chairman of the Saudi Contractors Authority, with the new two-week format designed to meet the increasing market demand and sector-specific growth opportunities within the Kingdom’s construction industry.
In its first week, Big 5 Construct Saudi hosted the 5th edition of the International Contracting Conference, organized by the SCA and dmg events, bringing together senior government officials, industry leaders and experts to discuss the future of construction in the Kingdom
In his keynote speech at the ICC, Al-Ajlan said the event “serves as an important platform for thought leadership and strategic discussions” that will shape the future of the construction industry as Saudi Arabia accelerates toward its Vision 2030 goals.
He added: “As a testament to the Kingdom’s leadership in construction excellence, Big 5 Construct Saudi complements our mission at the SCA to empower stakeholders, drive sustainability, and champion advancements that will propel the sector to new heights.”
Industry leaders participated in discussions on advancing sustainability and environmental, social and governance goals in Saudi Arabia. Sinan Rasheed, director of sustainability at New Murabba, highlighted the critical role of transparency and accountability through robust ESG reporting and compliance frameworks.
In its first week, the forum welcomed professionals from across the industry to explore innovations in the foundational stages of construction, spanning structural development, materials and engineering solutions, with co-located events including Heavy Saudi Arabia, Totally Concrete Saudi Arabia, and HVAC R Saudi Arabia.
“As we opened the doors to this year’s Big 5 Construct Saudi, construction industry professionals are gathering to explore key sectors such as heavy construction, concrete, HVAC, MEP technologies and building materials in the first week of the event, ” said Matt Denton, president at dmg events.
“The expanded two-week format not only enhances the attendee experience but also ensures that professionals can find the tools and technologies they need, representing every segment of the construction value chain. The first week specifically focuses on products and solutions for projects in the foundation to ground-up stages, aligning perfectly with the Kingdom’s growing construction demands,” he added.
On the sidelines of Big 5 Construct Saudi, Masdar signed a partnership with the Public Investment Fund, not long after PIF acquired a 30 percent stake in the building and construction materials company by subscribing to new shares via a capital increase.
According to Masdar, the strategic partnership strengthens the company’s position in the sector and drives growth to contribute to Vision 2030.
Faisal Majid Al-Muhaidib, CEO of Masdar, told Arab News: “We are a leading building material company, active in 29 cities in Saudi Arabia with 105 branches. Last week we announced that PIF has invested 30 percent in Masdar shares. So today they are our partners. This is a very big leap for Masdar.”
Al-Muhaidib said PIF has invested in the company as it seeks to localize the supply chain within Saudi Arabia, enhance the customer experience while shopping for building materials, and accelerate growth within the sector in the Kingdom.
He said: “We strongly believe that today we are living in the golden age of the construction industry in Saudi Arabia. We have wise leadership, a clear vision and a very supportive government. Saudi Arabia has always been a place of stability within the region. We are very much optimistic about the future.”
The CEO said in 2024 the building material sector size was around SR380 billion ($101.32 billion), and it is expected to reach SR500 billion by 2030.
“With works in progress for several mega projects, major sporting events and oil and gas there, we see many sectors open within Saudi Arabia for the building and construction material,” Al-Muhaidib said.
Abdulmajid Al-Rashoudi, governor of the SCA, described the construction sector as standing “at the heart of the Kingdom’s Vision 2030”.
He added: “At the SCA, we are committed to building an ecosystem that drives innovation, strengthens local capabilities, and attracts global expertise.
“Our ongoing partnership with Big 5 Construct Saudi, the largest construction event in Saudi Arabia, is a testament to this vision.
“It provides a world-class platform that connects public and private sector leaders and industry experts, showcases cutting-edge solutions, and accelerates knowledge exchange, thus playing a significant role in building a future-ready construction sector.”
Over 2,000 exhibitors from more than 60 countries are expected at Big 5 Construct Saudi across the two weeks, showcasing the latest products, services, systems and solutions.
As part of the EcoTrail feature on the opening day, one of the exhibitors, Dewalt, demonstrated its battery-powered tools that reduce carbon emissions by up to 60 percent.
Another exhibitor, LumiCon by Brickeye, presented real-time Internet of Things-based concrete strength monitoring which eliminates excess material waste and improves efficiency.