ENERGY OVERVIEW

2017

w w w . o n h y m . c o m

KINGDOM OF MOROCCO

The Kingdom of Morocco is a parliamentary constitutional monarchy. The King is the head of the State. The Chief of government is appointed by the King. Legislative power is vested in a bicameral system with two chambers: The Assembly of Representatives elected for a 5 year term, and the Assembly of Councillors serving a 9 year term with one-third of its seats up for election every 3 years.

POLITICALREGIME

GENERAL INFORMATION

Weight & Measure units

Metric systemTime

GMT +1Climate

Continental – Mediterranean

Surface

710,850 sq KmPopulation (2017)

34.9 million(60% urban and 40% rural)

Main citiesCasablanca, Rabat (Capital city), Marrakech, Fes, Oujda, Agadir,

Tangier, Lâayoune, Meknes,El-Jadida, Safi.

LanguagesOfficial: Arabic, Amazigh.

French (business), Spanish, English

Moroccan Dirham (MAD)1 US Dollar =

9.65 MAD1 Euro =

10.96 MAD Average rate for 2017

million visitorsin 2017

11.35

Tourism

Currency

EVOLUTION OF ENERGY IMPORTS

January - December

2016

80 00070 00060 000 50 000 40 000 30 000 20 000 10 000 0

January - December

2017

VALUE OF IMPORTS (billion MAD)

2016 2017

Crude Oil and Petroleum Products

Electricity

Other products

Total Energy Bill

ENERGY OUTLOOK

48

2.8

18.7

69.5

45

2

7.4

54.4

+27.4%

Sea

MAININFRASTRUCTURE

KEY ENERGY INDICATORS (2017)

Traffic 2017

Rail Air

Passengers:39.5 million

Freight:28.2

million tons

Passengers:20.4 million

Freight:81,408.03

tons

Passengers: 5.24 million

Freight:134.98

million tons

Net energy Bill

billion MAD (5.45 billion $)

69.5million Tep

Evolution of Energy Consumption

20.14 99.43%

Total Refining Production

8 327 MW + 2.9 %

Rural Electrification Coverage

Stopped since August 2015

Total Electrical Power Capacity

Electricity Demand Annual Growth

OIL AND GAS REGULATION IN MOROCCO

DurationReconnaissance License

Exploration Permit PETROLEUM AGREEMENT

(ONHYM acting on behalf of the state)

Exploitation concession

1 year renewable

8 yearsDivided in two or three periods

25 yearsExtension of 10 years

Work program G&G Seismic acquisition Exploration and Appraisal wells

Development and Production Wells

Acreage -200 sq.km ≤ acreage ≤ 2000 sq.km

Up to 10 000 sq.km onshore20.000 sq.km offshore

Government share 25%

25%

25%

Fiscal terms

Corporate tax 31% Common tax rateExemption : up to 10 years starting from the date of the first commercial production

Surtaxe None

VAT /custom duties Exemption : Of All equipment, materials, products, services necessary for exploration and exploitation operations

Royalty - -

- Onshore and offshore in up to 200 meters’ water depth: 10% for oil and 5% for gas. The first 300,000 tonnes of oil and 300 million cubic meters of gas produced from each exploitation concession are

exempt

- Offshore in more than 200 meters’ water depth: 7% for oil and 3.5 % for gas. The first 500,000 tonnes of oil and 500 million cubic meters of gas produced from each exploitation concession are

exempt

Surface rental -~ 100 US $/exploration permit

payable at the permit application and its extension application

~ 100 US $ per sq. km payable/year

Business tax, urban tax Exemption

Profits and dividends, tax shares income, capital rights and similar revenues

Freely transferable

Guaranteed and without limitation

MOROCCAN SEDIMENTARY BASINSONSHORE BASINS

D

Q

EB

C

F

G

I H

J

M P

N

O

A

LK

Rabat

Oujda

Tangier

Casablanca

Safi

Marrakech

Agadir

Ifni

Tarfaya

Boujdour

Dakhla

Lagwira

Laayoune

Essaouira

Oc

ea

n

A t l a

n t i c

Mediterranean Sea

Africa

ALGERIA

MAURITANIA

OIL SHOWS

OIL PRODUCTION

GAS SHOWS

GAS PRODUCTION

15,474

7,394

6,230

20,036

16,840

22,453

11,682

11,858

43,819

5,407

7,500

95,050

124,821

55,356

31,309

509,623

1,554

1,038

325

2,096 305

6,694

3,291

3,415

2,555

3,927

7,590

2,229

464

1,025

3,248

4,200

56,131

-

498

-

60

-

-

-

-

-

-

-

- -

-

-

-

-

-

90

4

10

5

4

111

47

8

-

9

25

54

Total

A

C 9,082

B

D

E

F

G

H

I

J

K

L

M

N

O

P

Q

25,312 8,130

6,959

175 38

850 -

-

-

-

-

Rif & Méso-Rif

Gharb

Guercif

Hauts Plateaux

Missour

Tadla-Haouz

Essaouira-Haha

Doukkala-Abda

BoudenibErrachidia

Ouarzazate

Souss

Haut-Atlas Occ.Anti-Atlas

Maroc Central Rehamna-Jebilet

Zag Bas-Draa

TarfayaLagwira

Pré-Rif

Beni-Znassen

BasinPosition

Area(Sq km) Basin Seismic

Coverage 2D Seismic Coverage 3D

Shows &Production

ExploratoryWells

OFFSHORE ZONESOFFSHORE ZONES

Zones Exploratory

Wells Area (sq Km) Shows &Production2D (KM) 3D (KM2)

Atlantic 163,366 68,103 42 337,569Mediterranean 10,901 - 2 24,500

Total 174,267 68,103 44 362,069