Oil exploration: UK Genel Company signs association deal with Morocco

British company Genel Energy announced a petroleum agreement and association contract sealed with the Office National des Hydrocarbures et des Mines (ONHYM) for offshore exploration in Lagzira block in Morocco.

The deal sets out an eight-year exploration term consisting of three phases. The Lagzira block (formerly Sidi Moussa) is a large offshore license that hosts a proven petroleum system (demonstrated by a 2014 Genel well which recovered oil).

Data showed leads and 18 identified exploration prospects for an estimated 2.5bn barrels.

The London-listed firm has launched a process to find a partner to take a material equity position and jointly pursue the exploration program in the block, with the opportunity to drill and test one of the high-graded prospects.