Israel’s NewMed Energy (NWMDp.TA) said it signed a deal with Morocco’s energy and mining ministry and Adarco Energy for offshore natural gas exploration and production in the North African country.
According to Israeli media sources NewMed and Adarco will each have a 37.5% stake in the Boujdour Atlantic license NewMed said. The ministry will hold the remaining 25%.
“For a long time now we have recognized a huge potential in Morocco for collaborations in both the natural gas and renewable energy sectors” NewMed CEO Yossi Abu said.
The Boujdour Atlantic license is in the southern part of Morocco’s offshore economic zone and was granted for eight years the company said.
It said the plan is to begin surveys of the prospect and then conduct exploratory drilling after about two and a half years. The deal still requires regulatory approval in Morocco.
NewMed is a main stakeholder in Israel’s huge Leviathan offshore gas field and is looking to merge with Capricorn Energy (CNE.L) to create a gas producer focused on Israel and Egypt.
Israel and Morocco normalized relations under the Abraham Accords in December 2020 and have since begun to cooperate in fields including tourism and military technology.
The signing of the US-brokered accords by Morocco as well as fellow Arab states Bahrain and the UAE was met with outrage from Palestinians who said such deals reward Israel while it continues to occupy the West Bank and besiege the Gaza Strip.
