On March 11, 2025, the Israeli company NewMed Energy and the Moroccan firm Adarco jointly secured significant rights to explore and produce oil and gas off the coast of Boujdour, located near the Canary Islands. This major collaboration is not just about energy extraction; it embodies the broader trend of increasing ties between Israeli and Moroccan entities, reflecting political shifts following normalized relations.
NewMed Energy, owned by Israeli billionaire Yossi Abu, and Adarco, managed by Moroccan-Jewish entrepreneur Yariv Elbaz, each retain 37.5 percent of the exploration rights to approximately 30,000 square kilometers of maritime territory. The Moroccan National Office for Hydrocarbons and Mines, meanwhile, will hold onto 25 percent of these rights, showcasing the government's continued involvement and oversight of its energy resources.
Yossi Abu expressed optimism about Morocco's energy prospects, stating, "We see great potential in Morocco since the opening of relations, and this announcement is consistent with our strategic ambition to expand our activities in the Mediterranean and North Africa." His comments indicate both confidence in the region's untapped resources and alignment with Morocco's vision for energy self-sufficiency.
The timing of this agreement is particularly telling, considering the geographical position of the Boujdour Atlantique region, which is located less than 200 kilometers from the Canary Islands. This proximity adds extra political significance to the joint venture, especially amid longstanding discussions about energy resources between Morocco and neighboring countries.
Historically, oil exploration attempts have faced obstacles. The Spanish company Repsol previously conducted exploratory operations around the Canary Islands but found insufficient quantities to justify commercial production. Not only have geological challenges raised doubts about the region's potential, but climate regulations by the Spanish government have restricted hydrocarbon exploration activities.
Experts affirm the geological data surrounding the Morocco-Canary Islands corridor confirm oil and gas exploration prospects. Jorge Navarro, deputy head of the Spanish Association of Geologists and Geophysicists, pointed out, "The results of previous research were hidden from the public due to the nature of the surveys conducted," highlighting the need for thorough investigations before jumping to conclusions about the potential reserves.
While the potential for new energy discoveries exists, previous explorations have resulted in disappointing outcomes. The failure of the Cinnamon-1 well, drilled just last December, serves as a cautionary tale. Companies like Eni, Qatar Energy, and Morocco's hydrocarbon office are actively engaging with the region, yet they face hurdles similar to those encountered by earlier explorers.
Nonetheless, Morocco continues to attract foreign investments within the energy sector. Notably, ExxonMobil has committed substantial resources for exploration, signing contracts covering areas totaling 109,246 square kilometers off the Agadir-Ifni coast and another 20,819 square kilometers off the Essaouira-Asfi coast. This flurry of activity reflects continued faith among international investors, even as geological challenges loom.
Electricity generation and natural gas production are pivotal for Morocco's energy strategy, especially against the backdrop of fluctuated external energy prices and increasing domestic demand. The country's push toward renewable energy sources complements these traditional pursuits, intending to secure energy independence and stimulate regional energy markets.
The dual focus on sustainability and resource extraction reveals Morocco's strategic approach as it navigates complex geopolitical energies and investment landscapes. While the potential for oil and gas remains uncertain, the partnerships formed between Israeli and Moroccan companies signal new opportunities and collaborations.
Going forward, careful management of resources and transparency around exploration outcomes will be imperative for Morocco. Coordination between the government and private sectors will determine the sector's future viability and overall economic impact, as well as its role on the international energy stage.