Annual Repport 2013 (PDF)
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KINGDOM OF MOROCCO ANNUAL REPORT 2013 WWW.ONHYM.COM His Majesty King Mohammed VI, May God Assist Him 1 MESSAGE OF THE MANAGING DIRECTOR 4 2 CONJUNCTURE 6 International… 6 Hydrocarbons exploration/production investments up National… 8 Morocco in growth 3 HIGHLIGHTS 10 Hydrocarbons 10 Unconventionnal Hydrocarbons 10 Mining 11 Organization 11 4 PETROLEUM EXPLORATION 12 More than 390 000 Km2 covered in research Licensing 12 ONHYM’s activities 12 Partners Activities 16 5 PETROLEUM PARTICIPATIONS & COOPERATION 22 29 companies are linked to ONHYM in the frame of petroleum agreements & reconnaissance contracts SUMMARY 6 PETROLEUM DRILLING & PRODUCTION 25 MKL-110 well development 25 Hydrocarbon production 25 Oil Shale - Shale gas 26 Maghreb Europe Gas Pipeline (MEG) 26 7 MINING EXPLORATION 27 Research carried out in a large part of the Kingdom and promising results ONHYM’S own activity 27 Partner’s activities 32 Mining Laboratories 36 8 MINING PARTNERSHIP & COOPERATION 37 9 MINING DRILLING 38 Continued drilling and new campaigns launched in the Southern Provinces 10 INFORMATION SYSTEM 39 User support for optimizing the exploitation of tools and strengthening security 11 HUMAN RESOURCES 40 Building competence and consolidate its role as a corporate citizen Workforce 40 Training 41 Social Activities 42 Cultural Activities 42 CSR: The pathway to excellence 42 GENERAL DIRECTOR 1 MESSAGE ONHYM celebrates this year its 85-year-anniversary. Nearly a century of service to the nation, a long history of achievements, discoveries, and performances....This institution created in 1928 was first called “Bureau de recherches et des participations minières – BRPM” which was operating in the upstream and downstream of both mining and hydrocarbon sector. Almost all Moroccan mines were discovered and brought into operation by BRPM. This office has contributed significantly to the growth of the national economy. BRPM was part of the daily life of thousands of Moroccans which were the source of their income. His name is etched now in the collective memory of many generations. BRPM is also geological, scientific and historical heritage which has been and remains carefully protected as a national heritage. In 1981, BRPM hydrocarbon activities were transferred to a new institution, ONAREP. In 2005, BRPM remerged with ONAREP and becomes ONHYM. The saga continues, fueled by high expectations shouldered by women and men who are committed to the service of this office, strengthened by a corporate culture and driven by the passion of their work. Today ONHYM is a company involved and engaged, capitalizing on its experience, with its solid expertise, and its multi-skilled human capital which forms its core. Moreover, ONHYM is a corporate citizen since it contributes to the development of people and society. ONHYM is a flexible and modern company which has not remained confined and has adapted to the various changes. ONHYM have led several reforms (privatization portfolio, reorganization, withdrawing from certain activities and refocusing on the exploration and promotion of hydrocarbons and mining). ONHYM has consistently pursued a partnership policy focused on research, promotion and diversification of production, and modernization of more efficient ways. This known and appreciated expertise has become the brand of ONHYM nationally and internationally. ONHYM pursues its constant quest to improve its overall performance, and is part of an integrated approach in accordance with the environmental issues and sustainable development, under the High Guidance of HIS MAJESTY THE KING, May GOD Assist Him. 4 Amina BENKHADRA eport 2013 R nnual A Today ONHYM is a company involved and engaged, capitalizing on its experience, with its solid expertise, and its multi-skilled human capital which forms its core. CONJUNCTURE International… Hydrocarbons exploration/production investments up Global economic activity slowed in 2013 due to monetary uncertainty in the 2 U.S. and growth levels of emerging economies. According to the IMF1, growth in the global economy stood at 2.9% in 2013 against 3.2% in 2012. The United States recorded a growth rate of 1.6% against 2.8% in 2012. Within this framework, the price of oil fell slightly in 2013 and stood at $ 108.6 / barrel (against 111.5 $ in 2012). Brent crude oil prices in U.S. $ / bl 1990 - 2013 120 111,5 111 108,6 100 98,2 80 79,4 72,6 65,9 60 62 … while 54,4 investments in 40 38,2 28,5 23,7 North America 20 stagnated (+2%) 0 after 4 years of 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 strong growth. Furthermore, global investment in hydrocarbon exploration/production increased by 11% in 2013 reaching a new record of 694 billion U.S. $. The highest rate of growth was recorded in the Middle East (+21%) and Europe (+20%) while investments in North America stagnated (+2%) after 4 years of strong growth. Other regions of the world have experienced growth rates ranging from 8% to 17%2. Global investments in E & P in 2013 465 561 623 694 750 G US$ 750 USA and Canada 700 650 +8% CIS 600 +11% Asia-Pacific 550 +11% Latin America 500 1- International Monetary Fund - +21% Africa October 2013 450 400 Estimated 2014 2- IFP Energies nouvelles - October 2013 350 Europa 6 300 250 Middle-East 200 150 100 50 eport 2013 0 R 2010 2011 2012 2013 2014 (p) nnual A In 2014, the upward trend will continue (+8%) and will be supported by high oil prices, significant investment opportunities and ongoing multi-year projects (development projects in Iraq, Offshore Brazil, shale gas projects in the USA ...). In terms of mineral exploration, global investment in 2013 totaled 15.2 billion $, down 29% from the record set in 2012 of 21.5 billion $. Exploration juniors and majors budgets fell by 39% and 24% year on year. This decline was mainly due to lower metal prices that caused difficulties to juniors to finance their projects. For the majors, maintaining pressure from shareholders to realize greater profit margins has been done at the expense of investments directed towards the development of the activity3. Total global budget for nonferrous metals exploration 24 5 21,5 20 4 16 15,2 3 12 2 8 Nonferrous Exploration (US$ bil) 1 4 SNL MEG Indexed Metals Price (1993=1) 0 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Nonferrous Exploration Total SNL MEG Indexed Metals Price Furthermore, the base metals market was impacted by the rise of the U.S. dollar as well as the changing demands and emerging countries concerns. In fact, the average price of copper dropped by 7.8% compared to 2012, due to the decrease in Chinese imports. The average price of zinc has also recorded a decline of 1.9% in 2013; this decline occurred despite lower stocks of this metal. The global zinc market will remain in surplus for several more months. The tin market benefited from the good performance of the electronics industry. The average price of tin has risen by 5.8% compared to 2012. The average price of lead has strengthened by 3.9% on yearly basis. The limited supply and mining production should continue to support the price of this metal. For precious metals, gold market has experienced a downturn in 2013 after 10 consecutive years of rising prices. The withdrawal of Western investment, particularly from the major U.S. banks, led to the fall in demand. Thus, gold prices decreased by 15.5% on yearly basis. This precious metal has also led 3- Metals Economics Group - silver and platinum to the fall. The prices of these two metals decreased by October 2013 23.6% and 4.2% respectively in 2013, while palladium, which has benefited 7 from the good performance of automotive markets as well as concerns about depletion of Russian stocks, had a price increased to 12.6%. eport 2013 R nnual A National… Morocco in growth Despite regional and global adverse economic conditions in 2013, the eco- nomy was able to record a GDP growth of 4.4% thanks to an exceptional agri- cultural season (20.4% increase of the primary sector added value). The ter- tiary sector has maintained a growth of 3.3% and value added manufactu- ring sector grew by 0.5%. Moreover, the national economy in 2013 was characterized by good trade contribution to growth and increased domestic demand. However, non-farm activities and the secondary sector declined with a growth rate of 0.3% in 2013 against 1.4% in 2012, due mainly to a slowdown in the mining sector. The continued decline in mining output is due to the combined contraction of metal and non-metallic ores export quantity, with a quasi-general reflux of their international prices. Regarding the energy sector, the net energy bill showed a regression of 6% compared to 2012 reaching 93.2 billion dirhams. About the oil bill, it recorded 85.4 billion dirhams in 2013. 8 eport 2013 R nnual A … the national economy was characterized by good trade contribution to growth and increased domestic demand. HIGHLIGHTS Hydrocarbons A total Investment of 2 338 298 003.49 DH for partners and 58 466 000 DH for ONHYM 3 Signing of: 6 new petroleum agreements, 13 amendments to petroleum agreements, 6 passage to additional periods, 3 new reconnaissance contracts, 1 addendum to reconnaissance contracts, 1 concession demand, 6 Memorandum of Understanding (MOU). Interpretation of: 14 500 Km of 2D seismic and 2 000 Km² of 3D seismic, and integration of geological and geophysical data, as well as geochemical modelisation in the Atlantic offshore. Drilling of 4 new exploratory wells: 2 onshore in the Gharb basin, 1 in Essaouira basin (Sidi Mokhtar), 1 offshore.