Morocco expects approximately MAD 9.21 billion, or about $1 billion, to be invested in oil and natural gas exploration through 2031 as the country searches for commercially viable domestic resources and seeks to reduce its heavy dependence on imported energy.
By Carolina Curiel
Published October 27, 2026
What Readers Should Know
MONTREAL (Oil Monster): Morocco is planning a new five-year push to assess its domestic oil and natural gas potential, with most of the expected investment coming from private energy companies rather than the state.
The country's Ministry of Economy and Finance estimates approximately MAD 9.21 billion, or about $1 billion, will be invested in hydrocarbon exploration through 2031, according to documents accompanying Morocco's draft 2027 Finance Bill.
Foreign and Moroccan private-sector companies are expected to account for approximately 91% of that investment, alongside the state-owned National Office of Hydrocarbons and Mines, or ONHYM.
Exploration Plan by the Numbers
MAD 9.21 billion — expected investment through 2031
~$1 billion — approximate U.S.-dollar value
91% — expected private-sector funding share
11 companies — active in exploration at the end of 2025
107,000 sq km — exploration area covered
The investment represents an exploration program rather than confirmation of new commercial oil or gas reserves.
Morocco has attracted international exploration companies for years, but domestic oil production remains minimal and natural gas output is small relative to national energy requirements.
The objective of the new spending is to improve geological understanding, drill prospective areas and identify discoveries capable of supporting commercially viable development.
At the end of 2025, 11 companies were conducting hydrocarbon exploration across approximately 107,000 square kilometres, with 10 onshore and 30 offshore exploration licences, according to the Finance Ministry report.
International interest continues. In January, ONHYM signed a petroleum agreement with U.S.-based Murphy Oil covering 10 exploration permits across nearly 17,000 square kilometres in the Gharb Deep Offshore area.
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The $1 billion figure should be read as risk capital, not future production.
Exploration spending pays for seismic work, geological studies and drilling intended to establish whether commercial resources exist.
The real measure of success will be whether that spending produces discoveries large enough and economical enough to move into field development.
Natural gas currently appears more advanced than oil in Morocco's domestic development pipeline.
National gas consumption is estimated at roughly 1 billion cubic metres per year, with demand concentrated in electricity generation and industries including steel and phosphate production.
Pipeline gas volumes increased 7.9% during 2025 to approximately 890.1 million cubic metres, according to the Finance Ministry report.
Morocco currently relies heavily on imported gas delivered through Spain and the Maghreb-Europe Gas Pipeline.
The Tendrara development in eastern Morocco is among the country's most advanced domestic gas projects.
Managem strengthened its control of the project during 2026 by acquiring Sound Energy's remaining interest. Phase 1 is designed around a micro-LNG development using the existing TE-6 and TE-7 wells.
Construction and commissioning have advanced, although OilMonster could not independently confirm that full commercial gas sales had begun as of October 27.
Morocco is pursuing domestic exploration while simultaneously developing a much larger regional gas-import corridor.
The African Atlantic Gas Pipeline, previously known as the Nigeria-Morocco Gas Pipeline, is planned to run approximately 6,900 kilometres along a hybrid offshore and onshore route linking Nigeria with Morocco through West Africa.
The system is designed to transport up to 30 billion cubic metres of natural gas annually.
Of that capacity, up to 15 bcm per year could eventually be available to Morocco and European markets through the existing connection toward Spain.
African Atlantic Gas Pipeline
Route: Approximately 6,900 km
Capacity: Up to 30 bcm/year
Estimated investment: About $25 billion
IGA signed: July 19, 2026
Initial gas target: Around 2031 for the first development phases
The pipeline reached an important political milestone on July 19 when ECOWAS heads of state signed the project's intergovernmental agreement in Freetown, Sierra Leone.
The agreement establishes a framework for the cross-border project and follows completion of feasibility and front-end engineering work.
The development is expected to proceed in phases rather than as one continuous construction project.
Initial sections are intended to connect Morocco with gas resources in Mauritania and Senegal before later stages extend the system south toward Nigerian gas fields.
Financing remains one of the project's biggest outstanding challenges. The full development has been estimated at roughly $25 billion.
Morocco's two gas strategies serve different purposes.
Domestic exploration is intended to determine whether the country can produce more of its own energy economically.
The African Atlantic pipeline would instead diversify imported supply while connecting Morocco more closely with producing countries in West Africa.
Neither strategy guarantees energy independence, but together they could reduce Morocco's exposure to a limited number of external supply routes.
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Morocco is effectively pursuing two energy-security bets at the same time.
One is geological: spend more money to determine whether commercially viable oil and gas can be developed at home.
The other is infrastructural: build access to much larger regional gas resources even if domestic discoveries remain limited.
The exploration program is far smaller than the proposed $25 billion African pipeline, but successful domestic discoveries could begin reducing import exposure without waiting for the entire regional corridor to be completed.
The Bottom Line
Morocco's planned $1 billion exploration program is a significant increase in effort, but it is still a search for resources rather than proof that large commercial reserves have been found.
The country's energy strategy increasingly combines domestic exploration, smaller gas developments and a much larger regional import network.
By 2031, the key question will be whether Morocco has converted that investment into producing fields, or whether imported gas remains the main source of supply for its growing industrial and power markets.
Continue Reading
Morocco Aims to Boost Natural Gas Share to 30% of Energy Mix by 2030
Courtesy: www.egyptoil-gas.com
