The hunt for oil and gas
6694e52f24233_OilGasLicences2024

So far, no oil and gas have been discovered in Western Sahara. Two exploration licences are today operated by foreign companies, both from Israel, both offshore. 

28 August 2024

The Moroccan oil research programme onshore and offshore occupied Western Sahara has been going on for over two decades. 

Two licences are today in the hands of international oil companies: both offshore and both to Israeli companies. 

In addition to the two licences awarded, the maps of the Moroccan National Office for Hydrocarbons and Mines (ONHYM) show eight other licences that are available for the industry. Of these, six have been under exploration over the years. Below is an overview of the exploration on the two currently active licences, and the six historic licences.

Morocco has been awarding permits to foreign companies since 2001. These two decades of exploration have included a dozen seismic study programmes onshore and offshore, and three drilling operations. 

A UN legal opinion from 2002 established that Morocco would have no right to engage in further oil exploration in Western Sahara without the Saharawi people’s consent and interest. No such consent has been obtained. 

All stock exchange registered companies that are involved in the exploration programmes have been met with critical engagement processes by their owners. Banks and pension funds have sold shares worth several hundreds of millions of Euros from the embroiled companies as such exploration in an occupied territory was found to be in violation of their ethical investment guidelines. The development has also been met with widespread condemnation from the Saharawi people themselves, as Morocco has no right under international law to issue hydrocarbon exploration or exploitation licences in the territory that it holds under illegal occupation.

 

CURRENT LICENCES: 

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Block: Boujdour Atlantique
Block holders (2022 to today) NewMed Energy (subsidiary of Delek Group Ltd) 37.5%, Adarco Energy 37.5%, ONHYM 25%. 
Historical block holders: Kosmos Energy, Cairn Energy, Kerr-McGee, Pioneer 
See WSRW articles about Boujdour Atlantique/Maritime, NewMed, Kosmos Energy, Cairn Energy, Atwood Oceanics, Kerr-McGee, Pioneer, Fugro, TGS-Nopec.

In December 2022, the company NewMed Energy, a subsidiary of Delek Group, announced that it had signed an exploration agreement with Adarco and ONHYM for the Boujdour Atlantique block. NewMed and Adarco hold 37.5 percent of the licence each, with ONHYM 25 percent. The agreement has a maximum duration of eight years.

Due to this licence, one of the biggest investors excluded Delek from its portfolios as ”the activity is not conducted in accordance with the wishes and interests of the people of Western Sahara». 

Namibia, 2015. The newly built drillship Atwood Achiever is observed on its way to occupied Western Sahara, to carry out oil drilling. The moment is historic, in a negative sense. It was the first time that oil drilling was to take place in the territory’s history of occupation, and the first time after the UN had said that such an operation would violate international law. 

This licence is probably the most known and most conflictual of all licences in Western Sahara. It corresponds to the location where the US operator Kosmos Energy and its Scottish minority partner Cairn Energy carried out the first and only oil exploration offshore the territory while under Moroccan occupation. The drilling took place from December 2014 to February 2015. 
 
Kosmos at the time held a 55% stake in the permit with its partner Capricorn – a subsidiary of Cairn Energy – which held 20%, while the remaining 25% was in the hands of ONHYM. 

As no substantial finding was made on the 29740 sq km block, Kosmos and Cairn abandoned the licence in 2018. A propaganda website established by Kosmos at the time is still operative to this day. The site summarises Kosmos Energy’s approach to the territory, by misrepresenting a UN legal opinion on the matter. Kosmos never made – nor makes – reference to having obtained permission from the Saharawis to operate on their land, something that the UN Legal office had put forth as a prerequisite. Kosmos Energy engaged in a ‘stakeholder dialogue’ with Moroccan interests in the territory, but without ever receiving the go-ahead from Saharawis. 

During the years that the licence was operated by Kosmos, the block also went under the name ‘Cap Boujdour Offshore’ and ‘Boujdour Maritime’. Kosmos Energy undertook 2D seismic studies in 2009, carried out by the Dutch company Fugro NV, which later announced that it "has decided to abstain from any further involvement in Western Sahara until the political situation has been resolved". New studies were undertaken in 2013 by the Chinese company BGP, the same year that Cairn Energy was taken into the partnership. 

In 2014, Kosmos announced that it had identified three prospects, the largest of these, called Gargaa, at 2,135 meters depth, and that it would use the drilling ship Atwood Achiever – owned by the company Atwood Oceanics – for the exploration. In March 2014, Aker Solutions AS, which had been responsible for building and installing the drilling system on the Atwood Achiever, stated that “if we had known that the equipment would be used in Western Sahara, we would not have signed this agreement”. Aker Solutions cancelled the maintenance agreement it had with the drillship. In May 2014, March 2017 and possibly October 2017, new seismic studies were carried out. 

The block was initially operated by Kerr-McGee in 2001-2005. Kosmos had originally entered into the block with a 30% share in 2004, while another US company, Pioneer Natural Resources Co, had a minor interest in these early years. As Kerr-McGee pulled out in 2006, Kosmos Energy took over the operatorship. Kosmos had announced its drilling plans already as a minority partner in 2005. Kerr-McGee had used TGS-Nopec for seismic explorations, which would later regret having been involved in the operation.

It was this licence when operated by Kerr-McGee, together with the licence for the Dakhla Atlantique block (signed by the Moroccan government with TotalFinaElf) that prompted the UN Security Council to ask its legal office for legal clarification. Kerr-McGee – and later Kosmos Energy, Cairn Energy and Delek Group – lost many of its biggest investors over the matter.

Download our 2014 ‘A Platform For Conflict’ about Kosmos Energy. 

 

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Block: Dakhla Atlantique
Block holder: Ratio Petroleum and Navitas Petroleum
Former block holder: Total SA (TotalFinaElf SA)
See WSRW articles about Ratio, Total, TGS-Nopec, Fugro.

The 109,900 sq.km Dakhla Atlantique offshore block was signed by Israeli company Ratio Petroleum in October 2021, with an option to be extended. In 2022, Ratio included another Israeli company into the licence, Navitas Petroleum. In all communication, Ratio and Navitas incorrectly refer to the territory as part of «Morocco». As of 2024, the companies are engaged in re-interpreting earlier 3D seismic data. Presently, according to its website, Ratio Petroleum holds a 70% stake in the block. 

This particular licence has a long history. The licence has changed in size, shape and name over the years. ONHYM has referred to the area as Anzarane, Anzarane Offshore, El Argoub Offshore, Dakhla Offshore or – as of now – Dakhla Atlantique.

The French multinational TotalFinaElf (later: Total SA) was awarded its first contract for reconnaissance work on this licence in 2001, then referred to as the Dakhla Offshore licence. The signature was announced at the same time that the Boujdour Maritime block further north was awarded to Kerr-McGee. The two licences were the first ever awarded by the Moroccan government in the occupied territory. This led the UN Security Council to ask its Legal Counsel to produce an opinion on the matter. The opinion concluded that any exploration or exploitation of Western Sahara’s mineral resources is illegal if not in accordance with the wishes and the interests of the people of the territory. 

Total signed prolongations of the licence in 2002 and 2003, before abstaining from prolonging the contract in 2004. Rumours surfaced, during the following years, that Total wanted to return. Even though the company did not have a licence, it did continue its research on the data it had collected, among others with the French research institute Ifremer.

Then, in 2011, Total signed a new 12-month reconnaissance licence with ONHYM, for an even bigger licence area. The block, covering 100,926 square kilometres, was dubbed “Anzarane Offshore”. No announcement was made by Total or ONHYM at the time of signing, but the information of the block allocation was discretely added to a ONHYM licence map during first half of 2012.

Total undertook large explorations during the time it held its licence. The first seismic studies were undertaken in 2002, by TGS-Nopec, which later expressed it regretted having been involved in the operation. Also Fugro took part in the exploration at the time – they too announced they would not repeat such operation. Later, studies were carried out in the area incessantly from July 2012 to July 2013, first by the UK marine survey company Gardline Shipping, and later by BGP, a Chinese seismic services company, a subsidiary of the Chinese state oil company CNPC. 

Total announced in December 2015 that it would not prolong its reconnaissance contract, as its first test results weren't convincing.

Download our report Totally Wrong, from 2013.

 

 

PREVIOUS LICENCES: 

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Block: Boujdour Offshore 
Former block holders: Glencore Exploration & Production (Morocco) Ltd (Operator), ONHYM, Teredo Oils, possibly Imara Energy, possibly Xplorer PLC.
See WSRW articles about Boujdour Offshore Shallow, Glencore, Teredo/Imara, Xplorer

Teredo Oils Ltd is a small British oil and gas production company that signed a reconnaissance contract for the Boujdour Offshore block with the Moroccan government in February 2011. In August 2011, a “520km 2D survey was completed in the Boujdour Shallow offshore block”. The exploration permit was said to have been signed by the UK company Teredo Oils in 2010 or 2011. At the time, the block was referred to as “Boujdour Offshore Shallow”

A Moroccan subsidiary of Swiss firm Glencore PLC, Glencore Exploration & Production (Morocco) Ltd, became operator of the block in 2013. Critique from the international investment community ensued, and Glencore quickly took steps to sell the shares and to negotiate a withdrawal. 

It was made public in 2018 that Glencore had withdrawn from the licence and had sold its assets back to Teredo.

WSRW has been unable to find whether Teredo held any other interest in any other license internationally. Teredo is linked to another firm called Imara Energy, a small Canadian registered company, which has also claimed to be owning an interest in the Boujdour licence. Both Imara and Teredo are the companies of businessman Mr. Alan Soulsby. 

Yet another company, UK registered Xplorer PLC, claimed at one stage to have an interest in the block. In 2014 it announced that it had entered into a memorandum of understanding with Teredo for purchase of working interest in the Boujdour Offshore Shallow. No further information has emerged since, and nothing is known about the company. 

 

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Block: Foum Ognit Offshore
Former block holders: New Age Morocco Ltd (Operator), ONHYM, Glencore PLC
See WSRW articles about Foum Ognit Offshore, New Age, Glencore.

The UK-based, Jersey registered, company New Age (African Global Energy) Ltd first obtained the operatorship of the 8,000 sq.km Foum Ognit Offshore exploration permit most likely in 2013. 

In 2013, the Swiss commodity trading and mining company Glencore Plc, announced having a an 18.75% interest in the block, with New Age holding 56.25% and the Moroccan government through the state-owned oil firm ONHYM having the last 25%. 

Seismic studies were undertaken on the block by BGP in 2017 and by SeaBird in 2014. The latter company regretted having carried out the contract, as the firm had initially been told by the operator that the block was located "offshore Morocco".

It was made public in 2018 that Glencore had withdrawn from the licence. The news followed large shareholder engagement vis-à-vis Glencore, and New Age took over Glencore’s share and operator role. 

 

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Block: Zag 
Former block holders: San Leon Energy (Operator), PetroMaroc, ONHYM
See WSRW articles about Zag, San Leon, PetroMaroc/Wolverine, Longreach, Island Oil & Gas. 

In 2006, San Leon together with two other companies - Island Oil and Gas and GB Oil and Gas - negotiated a reconnaissance license with ONHYM for the Zag Block. The licence covered the northeastern part of Western Sahara, and parts of southeast of Morocco. It initially even covered parts of the territory of Western Sahara that is not under occupation, but under Polisario control. This was later adjusted to only cover the occupied territories.

In January 2008, San Leon signed an agreement for an eight-year reconnaissance license with ONHYM. From then on, San Leon was operator with a 52.5% interest. Its partners, British company Longreach (later known as PetroMaroc) held a 22.5% share, while the Moroccan government through ONHYM held the remaining 25%.

In 2009, San Leon announced the conversion of the Zag reconnaissance license into a full exploration license. The same year, an aeromagnetic survey was carried out over Zag.

From July 2011, seismic studies took place in both Tarfaya and Zag through Novaseis, a Warsaw-based company that was 100% owned by the Dutch company Island Oil and Gas B.V. The latter firm was acquired by San Leon during the takeover of their Irish partner Island Oil and Gas in late 2010.

Around 2013 (and earlier), the companies told that they planned to undertake drilling on the Zag block. That never materialised.

The Zag partner PetroMaroc Corporation plc (formerly known as Longreach Oil and Gas Ltd) had operated under licences for oil blocks located in Morocco proper in addition to the Tarfaya/Zag licences on the Morocco/Western Sahara border. PetroMaroc was registered in Jersey, and was a subsidiary of a company with the same name in Canada. It was completely taken over by Canadian company Wolverine Energy and Infrastructure Inc in December 2018. No references to the Zag block were made in any files submitted by Wolverine to the Canadian official registries from the day of the take-over, whereas other PetroMaroc assets were referred to.

Around 2017, the Zag licence was removed from the ONHYM maps. In 2019, as ONHYM’s partnership with San Leon was terminated, the block reappeared on ONHYM, in a much larger size, as visible on ONHYM’s maps of 2024.
 

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Block: Sakia El Hamra/Tarfaya Onshore
Former block holders: San Leon Energy Morocco Ltd (Operator), ONHYM.
See WSRW articles about Tarfaya Onshore, San Leon Energy, Island Oil & Gas, Longreach/PetroMaroc/Wolverine, VINCI, Spectrum

From around 2019, the licence has been referred to by ONHYM as “Sakia El Hamra”, but for over a decade it was named “Tarfarya Onshore”. The name 'Tarfaya' confused many observers, believing that it is located in Morocco – as Tarfaya is a town in Morocco proper. However, the license, on the Moroccan-Saharawi border, has mostly been located on the Western Sahara side. 

This block was the location for the only drilling operation for hydrocarbons onshore Western Sahara by a foreign company following the Moroccan occupation of the territory. Under this license, just west of the capital city El Aaiún, the Irish/UK operator San Leon undertook exploratory drilling in 2015. The drilling operation caused major Saharawi demonstrations, and did not produce the finding that the involved oil companies were hoping for. 

2015: Thousands of Saharawi refugees protest San Leon Energy’s oil drilling onshore occupied Western Sahara. 

ONHYM’s initial signing of the Tarfaya licence was done in 2007 to three companies; a subsidiary of Island Oil and Gas (Island International Exploration Morocco, 40%, operatorship), Longreach Oil and Gas Ventures (30%) and San Leon (Morocco) Limited (30%). 

In 2009, the UK-based seismic services company Spectrum was awarded a contract to reprocess a part of the original 2D seismic data of the Tarfaya Onshore licence. In 2011, the CEO of Spectrum ASA – the mother firm – stated in business media that “we do not want to get engaged in Western Sahara. I have no problem in stating, in retrospect, that it might have been a bad idea to take this assignment”. He said that the London office was probably not aware of the fact that the data came from Western Sahara, and that they would not undertake further assignments, as they had originally planned.

From July 2011, seismic studies took place in both Tarfaya and Zag through Novaseis, a Warsaw-based company, 100% owned by the Dutch company Island Oil and Gas B.V. The latter firm was acquired by San Leon during the takeover of their Irish partner Island Oil and Gas in late 2010.

In September 2015, San Leon announced it had hit gas in the Tarfaya block (although the find was small) and that it would engage in further seismic work. The controversial drilling operation near El Aaiún was undertaken by a subsidiary of the French company VINCI.

PetroMaroc had an interest in the Tarfaya block from 2007 to 2014.

From 2016 on, the Zag block disappeared from official ONHYM maps. At the time, San Leon was in a dispute with ONHYM, the latter claiming that San Leon had not fulfilled its commitments to explore as previously agreed. As such, for a few years, San Leon was publicly claiming to still have rights in the territory, whereas ONHYM was of a different opinion. 
Registered on the AIM stock market in London, San Leon was excluded from portfolios of several of its investors due to the operation, including by the Norwegian government pension fund that until then was one of the biggest investors in the company. 
 

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Block: Lemsid
See WSRW articles about Lemsid, PGNiG.

What ONHYM today refers to as Lemsid constitutes a merger of two previous blocks called “Boujdour Onshore” and “Boujdour Onshore East”

The western part of the current Lemsid block – at the time when it was called Boujdour Onshore – was the location for an apparent petroleum drilling operation in 2011, undertaken by ONHYM itself which had been operator on that licence since 2006. Vehicles and equipment of both companies GeoAtlas and GeoSpec were observed on the block. 

A separate licence called Lemsid (much smaller than the current one, with the same name) was first mapped out in 2016 as the northern part of the former Boujdour Onshore East. 

No international companies had an interest on that former, smaller, Lemsid block, and the operator of the block has been referred to as ONHYM itself. Morocco opened a tender for seismic studies on that early Lemsid segment in 2015. The tender was won by the Polish company Geofizyka Kraków, a subsidiary of the Polish state-owned oil and gas company PGNiG. A few months after starting the survey works in 2016, the company all of a suddenly immediately left the territory, citing political reasons. The sudden exit came as a consequence of political noise and media coverage in Poland. WSRW wrote a report about PGNiG in 2016 (in Polish). 

OTHER OPERATIONS: 
In addition to the ones above, ONHYM in 2017 carried out a large seismic study programme offshore the territory. The study was comprised of nearly 15,000 kilometres of seismic data offshore Morocco and Western Sahara combined. The maps published suggest that an estimated 40% of the total study, or approximately 5,800 kilometres, was implemented offshore Western Sahara. The study was done by the UK company GeoEx in partnership with Russian and Chinese state owned companies. In 2019, WSRW reported that GeoEx was about to sell these seismic data. 

No activity has ever been observed on the blocks that in 2024 were referred to as El Hagounia, Boujdour Offshore I or Boujdour Offshore II. In 2019, an ONHYM map showed an available offshore licence to the west of Boujdour Atlantique. This is no longer to be found in the 2024 maps.
 

See the development of the ONHYM maps in occupied Western Sahara 

 

In parallel to the Moroccan illegal oil explorations in the territory, the petroleum authority of the Saharawi Arab Democratic Republic has issued licences to foreign companies, including for the parts of the territory under occupation as well as the part not under occupation. 

 

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