Hydro has signed an investigation contract as operator offshore Morocco.

The license, Northwest Safi, covers 6,542 sq km in 300-3,000 m of water. The contract has a duration of 12 months. The tasks covered by the contract include geological studies, seismic reprocessing, and collation of 2D seismic data.

"There is no oil production in this region yet, but there have been positive results from exploration of other basins along the West African margin, where modern technology has been applied in the deep waters," Hans-Helmut Berchelmann, head of the New Areas unit in Business Development in Hydro, said.

The contract gives Hydro the opportunity to enter an exploration contract at a later stage. This would include collation of more seismic data and drilling obligations.

Amendments to the petroleum legislation have resulted in better general conditions and fiscal frame conditions in Morocco. This has attracted oil companies such as Shell, Petronas, Repsol, Conoco-Phillips, and Vanco.

Next year, three or four deep-sea wells will be drilled in the basins that have been explored so far. The positive results from studies in the sea area off Mauritania have particularly caught the oil companies' attention.

"Hydro has established a partnership with Onarep (the national Moroccan oil company), and looks forward to a beneficial cooperation in this early exploration phase," Berchelmann said.

04/26/04