His Majesty King Mohammed VI

Contents

Message from the Managing Director 4

International environment and national situation 6

Highlights 10

Petroleum exploration 11

Petroleum participations and cooperation 21

Petroleum drillings and production 24

Oil shale 26

Mining exploration 27

Mining participations and cooperation 39

Mining drillings 41

Human resources 43

Computer technology and information system 46

Activity Report 2008 MESSAGE FROM THE MANAGING DIRECTOR

The year 2008 confirmed the continuing improvement of the performances of ONHYM in comparison with the previous year with regard to the tangible results achieved in both mining and hydrocarbon exploration, two core activities that were led in synergy with the development of several partnerships. This was shown, in particular, by an extension of prospecting zones and an intensification of the work undertaken, allowing the identification of encouraging prospects.

For ONHYM, 2008 has been year of continuity and deepening of its activities with a maintained pace in spite of the disturbances undergone by the international markets of the mineral and energy raw materials. The budgets dedicated to the mining and oil exploration recorded a slight increase compared to the year 2007.

Petroleum Exploration concerned a mining domain of nearly 321 707 km2 against 288 349 km2 in the previous year, mainly as a result of the conclusion of two new petroleum agreements and three new reconnaissance contracts associating new international operators.

Exploration efforts of our partners concerned the realization of four drilling wells among which one in offshore, and the acquisition of 2 431 km of 2D seismic survey and 486 km2 of 3D seismic survey, recording a net progress compared to the year 2007. Gravimetric and magneto metric airborne surveys, covering 6 4351 km, as well as the ground gravimetric campaign (2578 stations) were also carried out in areas that have been until now underexplored.

Anomalies and potential structures, play concepts and promising prospects were identified on several permits, both offshore and onshore. Some studies were conclusive enough to identify the location of twelve wells and to start the preparation of platforms for their realization in 2009.

The various steps for the development of the oil shales in the frame of partnerships have noticeably progressed on the Tarfaya and Timahdit deposits.

As far as Mining Exploration is concerned, research themes were diversified and the activity has been focused on the most promising zones, thanks to the intensification of a conceptual targeting, which allowed the identification of new objectives.

The works performed in a mining domain including 855 licenses, concerned 26 objectives among which 16 for precious metals, 8 for basic metals and 2 for rocks and industrial minerals.

In continuity of the previous years, works have been achieved on the most prospective zones of the Anti Atlas, the High Atlas Mountains and Jebilets-Guemassa, with a sustained research effort in the Southern provinces, where an important campaign of regional geochemistry was achieved. The projects that have been given a particular interest include Azouggar N’Tilili’s (polymetallic-gold), Glibat

4 Office National des Hydrocarbures et des Mines Activity Report 2008 Lafhouda and Twihinate (Fe, Nb, Ta, U and light rare earths) and Lafwila, for the gold bearing structures. A new prospect was also identified at Lamlaga (Fe, Nb, Ta, U and light rare earths).

A call for tender was launched for the transfer of Azouggar N’Tilili’s project after the conclusive results of the orientation study which has been carried on this project.

The certification in compliance with the ISO 9001 reference, version 2000, was resumed in 2008 for the mines laboratories.

Mining drilling activity recorded this year a considerable recovery as the volume of works increased by 52 % compared to the year 2007.

The information system registered the implementation of the projects, retained in the frame of the master plan finalized in 2007, according to the «project management» methods adopted in the charter of functioning. The realization of these projects involving petroleum and mining exploration activities, finances, logistics, human resources and data processing infrastructure, will allow ONHYM to better master its data in terms of safety, reliability and availability. It will also allow ONHYM to become eligible to the subsequent control of the State.

Concerning the human resources, two operations of simplification and clarification of the management methods have been completed. The first one concerned the harmonization of the rules of management for the entire staff, and the second concerned the implementation of the time management system.

These are the main lines of the activity of ONHYM during the year 2008. Thanks to the commitment of its partners and to the devotion of its staff, ONHYM could achieve its objectives, thus contributing to the economic and social development of Morocco, under the High Guidance of HIS MAJESTY THE KING, May GOD glorify Him.

Amina BENKHADRA

5 Office National des Hydrocarbures et des Mines Activity Report 2008 INTERNATIONAL ENVIRONMENT & NATIONAL SITUATION

The financial and economic crises that marked International oil environment : a more and the year 2008 have led to historical increases in more unstable market oil prices and to reduced consumption. From 50 dollar/b in January 2007, crude oil As for mining products, 2008 was characterized prices rose to 100 dollars in January 2008 to by an unprecedented reversal of situation. reach a record level of 147 dollars in July 2008. As a result of the slowdown of the world activity, The investments in oil exploration and mining crude oil prices fell back to their level of January continued to grow significantly. 2007.

Morocco has implemented a new strategy with If demand in emerging countries like China, a view to secure its energy supplies. India and Brazil and speculation were the main causes for the oil price surges throughout the International environment last three years, the drop in oil prices, started in the summer of 2008, reflects the fall off in world The world economy : from financial to oil demand following the slowdown of economic economic crisis activity in the large industrialized countries which expanded to the rest of the world. This has led After an exceptional year 2007 on several the International Energy Agency (IEA) to revise respects, 2008 is viewed as the year that its world oil consumption forecasts downwards witnessed the worst financial crisis since the for 2008 which are estimated at 86.2 million 1928 depression. The premonitory symptoms b/d. started in August 2007 in the United States with the subprime mortgage crisis. The financial Despite this collapse in oil prices, the world crisis expanded progressively to Europe and enters an era of expensive oil which will Japan thus causing the collapse of the main remain, however, marked by volatile prices stock exchanges and compelling the main and intermittent unbalanced markets. If industrialized countries to intervene by injecting the investments required for strengthening liquid assets by billions of dollars with an eye to infrastructures, increasing production capacities save their banking system. and providing against the decline in reserves by new discoveries are not implemented from now The financial crisis has had negative impacts on on to meet the demand that will grow as soon the real economy with the entry into recession as revival comes back, the world will face new of the main industrialized economies. The world oil crises. Gross Domestic Product growth passed from 5.2 % in 2007 to 3.4 % in 2008 according to In the upstream oil sector, world E&P investment the International Monetary Funds which expects rose by 19 % in 2008, and should settle in 2009, a regression of 0.5 % for 2009. according to Institut Français de Pétrole (IFP).

6 Office National des Hydrocarbures et des Mines Activity Report 2008 Evolution of crude oil prices in 2008

$/b 150 140 130 120 110 100 90 80 70 60 50 40 30 20 10 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Annual average

* Brent, Rotterdam quotation Source : IFP

International mining environment : a an average increase of 25 % compared with reversal of situation after historical records 2007 ; the rates of gold increased by 12 %.

The international financial crisis and the The consequences of this reversal in the slowdown of the world economic activity have international environment begin to be felt. led to a drop in demand especially of industrial Thus, the Anglo-Australian group BHP Billiton metals. has recently given up its takeover bid hostile to its compatriot but competitor Rio Tinto. On After pulverizing all high records, base metal the other hand, Arcelor-Mittal, the largest steel prices started a decrease from the summer company in the world has recently announced 2008 and came back to 2004 -2005 levels. production and job cuts in its steelworks Thus, the average copper prices dropped throughout the world. by 3 % compared with 2007 ; those of lead and zinc fell by 19 % and 43 % respectively, However, worldwide nonferrous and precious compared with 2007. On the other hand, tin metals exploration budgets reached US$ improved its performances by posting an 13.2 billion in 2008, up 26 % compared with average of US$ 18 467 per tonne in 2008 2007. This sixth consecutive yearly increase against US$ 14 513 the previous year. Precious is accounted for by the unprecedented levels metals prices maintained their upward trend of global metal prices reached over the last started two years before and gold recorded years.

7 Office National des Hydrocarbures et des Mines Activity Report 2008 Worldwide exploration budgets

$15 3,0 Relative Gold and Copper Prices (1989=1) $12 2,5

$9 2,0

(US$ Billion) $6 1,5

$3 1,0

$0 0,5 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08

Nonferrous Exploration Total Relative Copper Price

Uranium Exploration Total Relative Gold Price

Source : Publication of Metals Economics Group – November 2008.

National environment The energy consumption was about 14.7 Mtoe deriving basically from petroleum products Energy situation : a new national energy (60.9 %) and coal (25.8 %). This consumption strategy was met up to 97.5 % by imports.

In 2008, the national energy scene was marked by the working out by the Ministry of Energy, Mines, Water and Environment of a new energy strategy that will help endow the energy sector with a clear vision for the medium and long term to ensure availability of energy in Morocco in the best conditions in terms of supplies and costs.

The national energy scene was strongly impacted by the surge in crude oil and coal prices on the international markets. The oil bill rose from 52 billion DH in 2007 to 71 billion DH in 2008.

8 Office National des Hydrocarbures et des Mines Activity Report 2008 Electricity demand reached 24.002,8 GWH in occurred at the level of base metal prices 2008 against 22.608,1 GWH in 2007 recording starting from the second half of 2008 and a 6.2 % increase. the slowdown of phosphates world demand occurred in the third quarter of the year following The consumption of petroleum products the worsening of the world financial crisis. reached 8.962 million tonnes in 2007, a rise of 11.2 %. Thus, despite the drop in mining exports volume in 2008, the sales have more than doubled, The investments made in the energy sector rising from 34 billion DH in 2007 to more than passed from 10 billion DH in 2007 to 17billion 77 billion DH in 2008. The sales of phosphates DH in 2008. and their by-products accounted for 78 % of this turnover. Mining sector : good performances despite a difficult international environment

In 2008, the national mining sector registered globally satisfactory results despite the reversal

National energy consumption (Mtoe)

+ 40 % 2002 : 10.5 Mtoe 2008 : 14.7 Mtoe

Natural gas Hydraulic Hydraulic 0.5 % electricity electricity Natural 2.1 % Wind 1.6 % gas Wind 3.7 % Imported power power Imported electricity 0.5 % 0.5 % electricity 3.5 % 7.5 %

Coal 31.9 % Coal 25.8 %

Petroleum products Petroleum products 61.6 % 60.9 %

9 Office National des Hydrocarbures et des Mines Activity Report 2008 HIGHLIGHTS

Hydrocarbons Mines

• Acquisition of 2431, 5 km of 2D seismic data, • Launching of an international bid for the 486 sq km of 3D seismic data, 58 stations cession of Azouggar N’tilili polymetallic-gold of ADD-HR, and 64 351 km of airborne deposit in Tan Tan province ; gravimetric and magnetometric surveys and • Confirmation of the importance of Glibat 2578 stations of land gravimetric surveys ; Lafhouda and Twihinat prospects in Fe, Nb, • Drilling of 4 wells one of which is offshore ; Ta, U and light rare earth (Awserd province) ; • Nomination of ONHYM as manager of the • Completion of the geochemical survey royalty for the transit of Algerian gas via the subcontracted run in Awserd region and Moroccan territory ; start of first control works of circumscribed anomalies ; • Signature of two new Petroleum Agreements and three Reconnaissance Contracts for • Carrying on of feasibility study on Achemmach hydrocarbon exploration and production ; deposit (tin in El Hajeb province) in partnership with Kasbah Resources (Australia) ; • Conclusion of two memoranda of understan- ding (MoU) and a confidentiality agreement • Conclusion of two new mining draft for the development of oil shale potential ; agreements, a memorandum of understanding (MoU) and two cession contracts. • Signature of a cooperation and data exchange agreement ; • Signature of a grant agreement for the financing of a study project for data management.

10 Office National des Hydrocarbures et des Mines Activity Report 2008 PETROLEUM EXPLORATION

The year 2008 has seen a momentum for Hydrocarbon licensing onshore and offshore explorations which resulted in the opening of new frontier areas Compared to the year 2007, the license and and a greater diversification in exploration acreage awarding for hydrocarbon exploration objectives. registered in 2008 an important increase of 89 %. Onshore, more than 90 % of the surface Moreover, a larger use of 3D seismics, a major open to exploration were covered by exploration tool for exploration, was made and was extended permits or reconnaissance contracts. to the shallower and onshore objectives. By the end of 2008, the licensing domain is 2008 showed a resumption of exploration drilling broken down as follows : activities with some promising results.

Designation ONHYM Partnership Area sq km

Onshore exploration permits 13 25 184.90

Onshore exploration permits 52 90 136.49

Offshore exploration permits 41 73 164.77

Onshore reconnaissance licenses 7 128 182.80

Offshore reconnaissance licenses 1 4 921.50

Exploitation concessions 6 98.51

Exploitation concessions 4 18.85

Total 321 707.82

Onhym’s activity

Petroleum exploration of the Moroccan sedimentary basins, by ONHYM’s own means, was carried out in 2008 and was characterized by the implementation of the following geological and geophysical works : • Acquisition of the remaining 3D seismic program on Meskala-Toukimt zone, covering a surface of 161 sq km over 185 sq km ;

11 Office National des Hydrocarbures et des Mines Activity Report 2008 ONHYM’S EXPLORATION WORKS IN 2008

MEDITERRANEAN SEA

Safi-Ifni offshore • Objectives : Jurassic, Cretaceous and Tertiary • Petroleum reevaluation • Promotion 2 ALGERIA

TLANTIC OCEAN 3 Meskala-Toukimt A • Objectives : Triassic and Jurassic • Acquisition of 3D seismics (161 sq Km) • Seismic processing of 185 sq Km • Studies and development

1 ANIA MAURIT

Boujdour onshore • Objectives : Cretaceous and Tertiary • Seismic processing of 530 Km of 2D seismics • Seismic interpretation • Definition of play concepts and leads

12 Office National des Hydrocarbures et des Mines Activity Report 2008 • Processing of new 2D seismic data on test objectives of Upper Cretaceous and define Boujdour (530 km), and 3D seismic data on the petroleum systems of the Jurassic and Essaouira basin (185 sq Km) ; Lower Cretaceous sequences in this area. • Assessment of Boujdour onshore basin petroleum potential, highlighting especially the potential play concepts and leads ; • 2D and 3D seismic interpretation on stations and geochemical and geological modeling aimed at assessing the petroleum potential of the various areas under study.

Evaluation surveys

By its own means,ONHYM has carried out Appreciation and development of Meskala three projects started in the previous year, on and Toukimt fields Boujdour coastal areas and Meskala-Toukimt onshore fields, and on the offshore segments The acquisition and processing of 185 sq km between Safi and Ifni. of 3D seismics, started at the end of 2007 on Meskala and Toukimt fields, was completed in Regional reconnaissance on Boujdour coastal 2008. The ongoing interpretation of these data zones aims at defining new promising blocks and assessing the distribution of producing Triassic This project, which was launched to determine and Jurassic reservoirs. the petroleum potential of Boujdour Meso- Cenozoic basin, has focused on petrographical, On the other hand, a new sedimentology and petrophysical and logging analyses, diagenesis study, focused on carbonates from geochemical and geological modelling that the Callo-Oxfordian, contributed to gain a better confirmed the development of source rocks comprehension of the characteristics of these and reservoirs in Boujdour coastal areas.The reservoirs. interpretation of 530 km of 2D seismic data newly acquired on these regions, has led to Play concept controls of Safi-Ifni offshore the mapping of fault bounded and associated segment to amplitude anomalies within the Cretaceous series. The integration of all available geological 3D seismic data on deep zones and 2D data and geophysical data has helped to define on shallow zones were interpreted. The field potential play concepts and leads at the level geological studies and additional geochemical of Lower and Upper Cretaceous formations. analyses were carried out with the help of 3 The drilling of a stratigraphic well, scheduled for consulting experts. These works have permitted 2009, will be located on the best structure to to highlight other play concepts and prospects

13 Office National des Hydrocarbures et des Mines Activity Report 2008 and to outline the main trends of Cretaceous • The drilling of 4 wells, RSC-1 on Rabat-Salé and Tertiary reservoirs distribution. Haute Mer permits, ONZ-6 and CGD-9 on Sebou permit and FES-1 on Fès permit ; Promotion • The finalization of geological and geophysical studies and interpretations led to preparation As part of actions aimed at promoting the of platforms of several drilling that will be Moroccan sedimentary basins to worldwide conducted early 2009 (Anchois on Tanger– petroleum industry, ONHYM’s work efforts Larache permit), TAJ-1 on Bouanane, have largely concentrated on the Atlantic OZW-1, OZW-2 on Tissa-Ouezzane, KSR-8, offshore segment. In this regard, ONHYM has CGD-10, CGD-11 and ONZ-7 on Sebou and attended 9 international events, among which HR-33 to 36 on Tselfat permit. APEX, NAPE, NATC, AAPG annual convention, Offshore Technology Conference, EAGE, WPC, AAPG international convention and SEG.

This work effort was crowned with the signature of 3 reconnaissance licenses : «Haut Atlas», «Missour Ouest» and «Essaouira Shallow Offshore» and 2 petroleum agreements on Bas Draa and Essaouira Deep Offshore. On the other hand, negotiations are under way on blocks off Agadir.

Partners’ activity Offshore zones

The exploration activity of Onhym’s partners, in Tanger – Larache permits (Repsol / Dana / 2008, was marked by a notable increase, mainly Gas Natural) onshore. The main activities are summarized as follows : The encouraging results of the economic and feasibility study have enabled Repsol Company • The implementation of two airborne and its associates to drill their first well on magnetic/ gravity surveys totaling 64 351 Anchois prospect. Drilling is expected to take km on Boudenib, Ouarzazate and Zag-Bas place, in January 2009. Draa basins and of a detailed continental gravimetric coverage of 2578 stations on Rabat-Salé Haute Mer permits (Petronas) Boudenib ; • The acquisition of 2 431.5 km of 2D seismic The Malaysian company Petronas has data (1 480 km offshore and 951.5 km executed, over the period ranging from January onshore) and 325 sq km of 3D seismic 5, 2008 to February 10, 2008, the drilling of onshore ; RSC-1 well, located offshore Rabat-Salé at a

14 Office National des Hydrocarbures et des Mines Activity Report 2008 water depth of 2 187 m, and has reached the of geological and geochemical surveys have final depth of 4 217 m. led to the definition of potential structures. A 3D seismic program of 100 sq km is scheduled in Stratigraphical, geochemical and seismic 2009 to better define the promising prospects. reinterpretation analyses, provided within the framework of a ‘postmortem’ study are being Tarfaya Shallow permits (Maersk) finalized in an effort to redirect the future exploration works in this zone. Two large- size prospects in the Jurassic platform have been mapped based on the interpretation Casablanca offshore permits (MPE) of 3D seismic data. The promotion survey and the data room organized by the company did Play concepts and Paleozoic prospects have not arouse the interest of other partners to been defined in this segment. A new agreement share the risk of the first drilling in these permits. is under negotiation to carry on with the As a result, the Tarfaya Shallow permits were evaluation of the oil potential in these zones. abandoned.

Loukos offshore permit (MPE) Ras Juby permit (Genting)

The geological and geophysical studies and The estimation of the potential and recoverable interpretations have led to the highlighting of reserves, in Cap Juby structure, has been Mesozoic and Tertiary oil play concepts and finalized. The economic feasibility survey and prospects. research for partners to share the drilling risk are underway. Other exploration works, on the Atlantic offshore permits, are under negotiation and will lead to a Boujdour offshore permits (Kosmos) new agreement. The American company Kosmos has acquired, Safi offshore Nord Ouest permits (Statoil- reprocessed and interpreted 1 480 km of 2D Hydro / Dana) seismic data. New promising prospects have been defined and a new 3D seismic coverage The promotion survey and the data room of 2000 sq km, scheduled at the beginning of organized by the Statoil-Hydro / Dana companies 2009, will help specify and classify by order of did not attract other associates to share the priority the petroleum targets in these permits. drilling risk in these permits. The region was finally abandoned and will be integrated as part Onshore zones of the promotion of free zones in 2009. Ouezzane-Tissa permits (TransAlantic / Direct Agadir Maritime permits (GBP) / Anschutz / Longe)

The interpretation of the reprocessed 2D Following the encouraging results of the seismic data and the integration of the results interpretation of geophysical data, these partners

15 Office National des Hydrocarbures et des Mines Activity Report 2008 scheduled the drilling of two exploration wells 2008, the drilling of FES-1 well. As of December OZW-1 and OZW-2. Preparations for the drilling 31, 2008, the drilling has reached a depth of platform of OZW-1 well are underway. The first 2 807 m at the level of a Miocene series. Gas well will be drilled in early 2009 in an effort to shows have been encountered at the level of test the Jurassic objectives, in the Western this Tertiary sequence. The drilling will continue, Prerif basin ; simultaneously, a new ADD-HR in 2009, to reach the expected final depth of campaign of 605 measure stations coupled 3 800 m. with an additional geochemical survey, aimed at exploring other potential zones in these permits, Moulay Bousselham permit (Heyco) is underway. A postmortem survey on MED-1 well was completed and enabled to direct exploration works towards gas targets, at the level of post nappe Tertiary. In this regard, ONHYM and Heyco undertook new negotiations aimed at defining a minimum work program over this permit.

Sebou permit (Circle Oil)

Circle Oil acquired at the beginning of 2008 an additional 3D seismics of 90 sq km covering Sebou permit by 145 sq km of 3D seismic Asilah permits (TransAlantic / Direct / Anschutz / Longe) data. Likewise, the company conducted a 2D seismic survey of 57 km on the same Towards the end of 2008, these partners permit. The interpretation of 3D seismics led acquired a new 2D seismics coverage totaling to the identification of more than 80 potential 200.5 km. The processing of these data is anomalies. underway. The first wells ONZ-6 and CGD-9, drilled Gharb Centre and Gharb Sud permits (Cabre) between, 26 September and 19 October and between 4 and 24 November 2008, Exploration works in the region included the respectively, enabled to show modest biogenic acquisition and processing of 210 km of gas accumulations. The recoverable reserves new 2D seismics aimed at highlighting new are under evaluation by long-term tests. anomalies and specifying some gas prospects. The platform of the third well KSR-8, scheduled Fès permit (Cabre) in 2008, was prepared but the bad weather conditions postponed the start of the drilling As part of its commitments over this permit, until January 2009. Preparations of platforms of Cabre Company started, on 26 September the three other wells were launched.

16 Office National des Hydrocarbures et des Mines Activity Report 2008 Tselfat permit (TransAtlantic)

This American company acquired 175 sq km of 3D seismic data in early 2008. The conclusive results of geological and geophysical studies have led to the positioning of 4 wells HR 33-34- 35 and 36, with a depth of about 1000 m each on Haricha zone. The drillings are expected to be implemented in 2009.

Tendrara permits (MPE)

MPE works on these permits focused on long term tests of TE-5 well and on the interpretation Boudenib permit and Ouarzazate of reprocessed 2D seismic data. New play reconnaissance zone (MND) concepts and Triassic petroleum prospects have been delineated on the north western MND acquired 45 562 km of airborne magnetic/ zones. gravity lines followed by the implementation of a detailed land gravimetric survey of 2 578 Ounara Est and Ouest permits (MPE) stations.

Following the reprocessing and interpretation On the other hand, MND undertook the of older seismic data, new play concepts have processing of 2 443 km of 2D seismic lines been developed and new Triassic and Jurassic covering Boudenib and Ouarzazate basins. prospects have been identified. A work program The interpretation of magnetic, gravimetric and is under negotiation in view of concluding a new seismic data is under way. agreement. Tadla and Haut Atlas reconnaissance zone Missour Est reconnaissance zone (MPE) (Hunt Oil)

In this zone, MPE Company carried on seismic Hunt Oil acquired in Tadla zone, on the processing to complete the petroleum potential northern borders of the High Atlas, 60 sq km evaluation. of 3D seismic data. The preliminary results arising from the interpretation of these data Missour Ouest reconnaissance zone (MND) proved encouraging. On the High Atlas reconnaissance zone, works included the MND started the first field surveys bearing on structural interpretation of satellite images and sedimentological studies and geochemical field geological surveys in an effort to define analyses and is now reprocessing the older the tectonic style and the compounds of the seismic data. petroleum system in the region.

17 Office National des Hydrocarbures et des Mines Activity Report 2008 Doukkala-Abda reconnaissance zone (ENI) Paleozoic structures in this frontier zone. These partners expressed their interest in carrying on ENI acquired, in early 2008, a 2D seismic exploration works in these regions within the campaign totaling 484 km.The processing of framework of a new work program. these data and the reprocessing of 1 000 km of old seismic lines is underway. Geochemical Tarfaya onshore permits (Island Oil & Gas / analyses, based on fluid inclusion technology, San Leon Energy / Longreach) confirmed the hydrocarbon impregnation of Paleozoic reservoirs. Other additional The first evaluation works of the petroleum geochemical works, relating to Triassic reservoirs potential on these permits concentrated on have been implemented. the reprocessing of old seismic data and the synthesis of former works and existing studies. Ouest Souss onshore reconnaissance zone (GBP) Haha permits (PEL)

The reprocessing and interpretation of 2D The field studies conducted, together with seismic data, integrated with geological and seismic and gravity reprocessing works, showed geochemical surveys permitted to highlight the play concepts at the level of the Paleozoic and petroleum potential in this frontier zone. These Triassic. A 2D or 3D seismic campaign is under positive results encouraged GBP to undertake negotiation and will be carried out in 2009. negotiations for a minimum work program to carry on the exploration of this region. Bouanane permit (Dana / Tethys / Eastern)

Bas Draa permit (Petrocanada/ RWE) Gravity and magnetic modelling and interpretation of reprocessed PSTM seismic Following the encouraging results of geological, data confirmed and specified the closures of geochemical and magnetic/gravity surveys, this Tafejjart structure. TAJ-1 well was spudded on reconnaissance zone was converted into an this prospect and preparations of the platform exploration permit. The acquisition of 1 400 km and access roads are underway. The well is of 2D seismics was scheduled and preparations scheduled for February 2009. for the undertaking of this survey started at the end of 2008. Guercif Est and Ouest permits (TransAtlantic / Stratic / Longe) Zag basin reconnaissance zone (San Leon Energy / Island Oil & Gas / GB Oil & Gas) Works carried out on these permits mainly concentrated on the re-entry of MSD-1 well. San Leon Energy and its partners carried out Log operations and tests on potential zones, airborne magnetic surveys totaling 18 789 km. at the Jurassic level, were carried out by the The processing and interpretation of these end of 2008. No inflow of hydrocarbons, in the data highlighted the hydrocarbon potential of tested levels, was established.

18 Office National des Hydrocarbures et des Mines Activity Report 2008 PARTNERS’ EXPLORATION WORKS IN 2008

CABRE (Fès) Drilling of Fès-1 well under way-Depth reached 2807 m

TRANSATLANTIC/DIRECT/ANSCHUTZ/LONGE (Tissa-Ouezzane) TRANSATLANTIC (Tselfat) Acquisition of 58 stations ADD-HR Acquisition of 175 Km2 of 3D seismics

MEDITERRANEAN SEA TRANSATLANTIC/DIRECT/ANSCHUTZ/LONGE (Asilah) Acquisition of 200,5 Km of 2D seismics Tanger Tetouan Nador 130 Melilla CIRCLE OIL (Sebou) 48 Nador 131 2 49 Al Hoceima Acquisition of 90 Km of 3D seismics 47 109 52 60 and 57 Km of 2D seismics Oujda 53 12 101 110 Drilling of 2 wells : ONZ-6 (FD : 1 000 m) 56 106 111 55 54 103 113 150 149 and CDG-9 (FD : 975 m) 58 57 105 112 59 RABAT 102

14 51 13 Casablanca PETRONAS (Rabat-Salé) 50 136 11 158 Drilling of a well RSC-1 (FD : 4 217 m) 8 9 7 159 6 CABRE (Gharb Centre and South) Safi107 15 135 Acquisition of 210 Km of 2D seismics 10 135 140 141 1421381 137 171 139 172

16 147

Marrakech 146

17 143 173 144 145 170 132 148 174 133 134 Ouarzazate 116 114 AgadAgadiradir ALGERIA 115 TLANTIC OCEAN A Ifni

160 TRANSATLANTIC /STRATIC/LONGE 99I 100 (Guercif East and West) 165 168 Workovers on MSD-1 well 104 163 167 151 137 Tarfaya 152 161 162 164 166 169 138 153 154 MND (Boudnib and Ouarzazate) Acquisition El Aioun 155 108 of 45 562Km of airborne magnetic/gravity data 156 78 and 2578 stations of land gravity 79 157 81 80 117 82 83 118 HUNT OIL (Tadla) Boujdour 85 119 Acquisition of 60 Km2 of 3D seismics 84 120 86 87 121 88 89 122 90 123 91 124 92 125 95 126 94 93 127 96 128 98 129 97 ANIA MAURIT KOSMOS (Boujdour offshore) Acquisition of 1 480 Km of 2D seismics

ENI (Doukkala) SLE/LOG/GB OIL AND GAS (Zag Basin) Acquisition of 484 Km of 2D seismics Carrying out of 18 789 Km of airborne magnetic data

19 Office National des Hydrocarbures et des Mines Activity Report 2008 SUMMARY OF WORKS IMPLEMENTED IN 2008

Geophysical activity

Airborne Permit/ 2D 3D Land ADD-HR gravity and reconnaissance Company seismics seismics gravimetry (Stations) magnetic zone (RZ) (Km) (Sq km) (Stations) (Km) Meskala-Toukimt ONHYM 161 concession Boujdour offshore Kosmos 1 480 permits

Ouezzane Tissa TransAlantic/Direct 58 permits /Anschutz/Longe

TransAlantic/ Asilah permits Direct /Anschutz/ 200.5 Longe Gharb Centre and Cabre 210 Sud permits Sebou permit Circle Oil 57 90 Tselfat permit TransAlantic 175 Boudenib permits MND 45 562 2 578 and Ouarzazate RZ Tadla RZ Hunt Oil 60 Doukkala-Abda RZ ENI 484 San Leon Energy, Zag basin RZ Island Oil & Gas 18 789 and GB Oil & Gas

Total 2 431.5 486 58 64 351 2 578

Drilling activity

Permit Company Drilling Final interval (m) Dates From 02 January to 10 Rabat-Salé Haute Mer Petronas RSC-1 4 217 February 2008 From 26 September to 19 ONZ-6 1 000 October 2008 Sebou Circle Oil From 04 to 24 November CGD-9 975 2008 From 26 September to 31 Fès Cabre FES-1 2 807 December 2008

20 Office National des Hydrocarbures et des Mines Activity Report 2008 PETROLEUM PARTICIPATIONS & COOPERATION

In 2008, ONHYM undertook several proactive • Eight amendments to petroleum agreements ; promotion actions and contacts with petroleum • Five addenda to reconnaissance contracts ; companies that led to the conclusion of the following : • A deed of assignment ; • Two new petroleum agreements ; • A cooperation agreement ; • Three reconnaissance contracts for the • A grant agreement. exploration and exploitation of conventional hydrocarbons ;

Petroleum agreements

Number of ONHYM’s partners Zone validity Area sq km Works committed permits

2D seismic survey, 4 exploration electromagnetic Canamens Energy permits «Essaouira Deep 1 year and 6 6 808.5 modelling of seabed Morocco “Essaouira Deep Offshore» months and geological and Offshore’’ 1 to 4 geophysical studies

10 exploration PetroCanada permits 2 years and Geological work and exploration Morocco, «Bas Draa» 19 951 «Bas Draa 1 to 6 months 2D seismic survey RWE DEA AG 10»

Reconnaissance contracts

Initial ONHYM’s partners Zone Area sq km Works committed validity period

2D seismic survey, Canamens Energy «Essaouira Shallow electromagnetic modelling of 12 months 4 921.5 Morocco SARL Offshore» seabed and geological and geophysical studies

Hunt Overseas Oil Geological and geophysical «Haut Atlas» 12 months 22 875 Company studies

Geological and geophysical MND Morocco Ltd «Missour Ouest» 12 months 13 086.9 studies

21 Office National des Hydrocarbures et des Mines Activity Report 2008 Amendments to petroleum agreements

ONHYM’s partners Zone Amendments Description

TransAtlantic Morocco Ltd, Amendment n° 1 to Substitution of Sphere Stratic Exploration Morocco Ltd Guercif “Guercif” petroleum Petroleum QSC by Longe Energy Ltd agreement Longe Energy Ltd

Direct Petroleum Morocco Inc. Amendment following the Anschutz Morocco Corporation Amendment n° 1 to transfer of 50 % of Direct TransAtlantic Morocco Ltd, Asilah “Asilah” petroleum and Anschutz parts of Stratic Exploration Morocco Ltd agreement interest to TransAtlantic Longe Energy Ltd and Longe

Direct Petroleum Morocco Inc Amendment following the Anschutz Morocco Corporation Amendment n° 1 to transfer of 50 % of Direct TransAtlantic Morocco Ltd, Ouezzane-Tissa “Ouezzane-Tissa” and Anschutz interest Stratic Exploration Morocco Ltd petroleum agreement parts to TransAtlantic and Longe Energy Ltd Longe

Amendment n° 1 to “Ras Extension of the initial Genting Oil Morocco Ltd Ras Juby Offshore Juby Offshore” petroleum validity period of the agreement permit for 6 months.

Amendment n° 1 to Extension of the initial Kosmos Energy Offshore Boujdour Offshore “Boujdour Offshore” validity period of the Morocco HC petroleum agreement permits for 6 months

Amendment n° 2 to “Rabat Extension of the initial Petronas Carigali Overseas SDN Rabat Salé Haute Mer Salé Haute Mer” petroleum validity period of the BHD agreement permits for 6 months

Amendment n° 1 to “Safi Extension of the initial Statoil Hydro Morocco AS, Dana Safi Nord Ouest Nord Ouest” petroleum validity period of the Petroleum (E&P) Ltd agreement permits for 12 months

Amendment following Repsol Exploracion SA Amendment n° 1 to the transfer of 24 % of Dana Petroleum (E&P) Ltd Tanger-Larache Offshore “Tanger-Larache Offshore” Repsol parts of interest Gas Natural Exploracion SL petroleum agreement to Gas Natural

22 Office National des Hydrocarbures et des Mines Activity Report 2008 Addenda to reconnaissance contracts

ONHYM’s partners Zone Addenda Description

Addendum n° 2 to Extension of the initial validity Eni Morocco BV Doukkala-Abda “Doukkala-Abda” period of the reconnaissance reconnaissance contract license for 10 months Addendum n° 1 Extension of the initial validity MND Morocco Ltd Ouarzazate to “Ouarzazate” period of the reconnaissance reconnaissance contract license for 6 months Addendum n° 1 Extension of the initial validity Maghreb Petroleum Exploration Missour Est to “Missour Est” period of the reconnaissance SA “MPE” reconnaissance contract license for 12 months Extension of the initial validity Addendum n° 1 to “Tadla” Hunt Overseas Oil Company Tadla period of the reconnaissance reconnaissance contract license for 12 months Longreach Oil and gas Ventures Ltd Addendum n° 1 to “Zag Extension of the initial validity San Leon Morocco Ltd Zag basin Basin” reconnaissance period of the reconnaissance Island International Exploration contract license for 12 months Morocco

Other agreements ONHYM and USTDA (US Trade and Development Agency). Under this agreement, Circle Oil USTDA grants ONHYM US$ 331 581 that will serve for a partial financing of a study project Signature of a deed of assignment between relating to data management and investment Circle Oil and ONHYM through which ONHYM promotion in upstream petroleum and mineral transfers 60 % of the undivided interest of the development. Office in “Oulad N’Zala” concession to Circle Oil.

RWE DEA AG

Signature of an agreement for cooperation and data exchange for the study of Tarfaya – Laayoune basin. This agreement was concluded under a partnership between RWE and 4 German training Institutes.

USTDA

Signature of a Grant Agreement between

23 Office National des Hydrocarbures et des Mines Activity Report 2008 PETROLEUM DRILLINGS & PRODUCTION

Petroleum drillings for natural gas and 8 850 tons for condensate and crude oil, thereby recording a fall of 18 % In 2008, drilling works concentrated on the for natural gas and 19 % for condensate and preparation of H.1700 N°II rig at the base crude compared to the previous year. This fall is of El Hanchane, in expectation of the works mainly due to the reduction of OCP withdrawals, scheduled for the year 2009, especially the especially during the last quarter of 2008 and implementation of MKL-102 workover, Boujdour the stop of production in OLB-1 well depleted stratigraphic well, and Meskala development during the year. well.

On the other hand, ONHYM ensured several services related to equipment location and support for the partners operating in Morocco.

Hydrocarbon production

The national production of hydrocarbons reached 49.60 million standard cubic meters

ONHYM’s production

Production / wells Condensate/Crude in tons Natural gas in standard cubic meters Total 7 323 33 755 810

ONHYM / partners’ production

• AHF-1 / Cabre - 1 699 494 • SAR-1 / Cabre - 4 275 370 • OLB-1 / Samir - 8 077 175 • ONZ-4 / Circle Oil - 1 790 248

Total - 15 842 287

Samir’s production

Sidi Rhalam (RH-2) 1 527 -

Total 1 527 -

Grand total 8 850 49 598 097

24 Office National des Hydrocarbures et des Mines Activity Report 2008 Hydrocarbon marketing 2 %, due to the increase in oil prices, especially during the first 9 months of 2008. Despite the cuts recorded in the marketed volumes, the turnover knew only a slight fall of The table below shows these changes :

Years

Fields / Deliveries 2008 2007 Value Value Volumes Volumes DH pre-tax DH pre-tax Natural gas (Volumes in 38 340 765 70 249 706 46 603 876 78 842 300 standard cubic meters)

- Essaouira / OCP 31 849 295 56 788 458 38 430 597 64 226 100

- Gharb / CMCP 6 491 470 13 461 248 8 173 279 14 616 200

Variation in % 2008/2007 -17.73 -10.90

Condensate / Samir 7 135 37 338 957 8 881 31 060 600 (Volumes in tons)

Variation in % 2008/2007 -19.66 20.21

Total pre-tax revenues (in DH) 107 588 663 109 902 900

Variation in % 2008/2007 -2.11

Exploitations • State/ONE/ONHYM agreement for the use and exploitation of a gas pipeline passage ONHYM kept on providing exploitation services connected to MEG with a view to supplying for its own account and for the account of its Renault project with natural gas ; partners, especially Samir, Cabre and Circle • State/ONE agreement setting the terms and Oil on the fields of OLB-1, SAR-1, AHF-1 and conditions for supplying Renault-Tanger plant ONZ-4. with natural gas coming from the transit royalty and for taking in charge by the Moroccan Maghreb Europe Gas Pipeline State of upstream supply risks. (MEG)

ONHYM has, on the other hand, taken part ONHYM has been designated as manager in the Board of Directors works of Metragaz of the transit royalty of Algerian gas via the Company. Moroccan territory (in replacement of SNPP). Representatives from ONHYM have taken part in the preparation of the following agreements :

25 Office National des Hydrocarbures et des Mines Activity Report 2008 OIL SHALE

In accordance with ONHYM’s strategy for oil San leon shale development, the activity in 2008 focused on the following : San Leon Company has a keen interest in the deep strata of Tarfaya oil shale deposit and has Study of a new legal and fiscal concluded a confidentiality agreement for the framework testing of the data available in this zone.

As part of its new strategy, ONHYM is working Xtract energy on the development of an appropriate legal framework for the development of oil shale. Signature of a MoU of two-year extensible validity, for the feasibility study and evaluation of One (national office of electricity) oil shale in “Tarfaya 1” permit. project Eesti energia As part of ONHYM / ONE partnership, the latter has carried on its consultations with specialized Signature with the Estonian national company companies for the construction of a pilot of a confidentiality agreement on oil shale in thermal plant using Tarfaya oil shale. Thus, for Tarfaya onshore zone. a best optimization of the project, the capacity of the plant will be 100 MW instead of 20 MW expected initially.

Petrobras/Total agreement

The first phase of the estimated work program has been completed ; the ‘Petrosix’ process has been tested on fresh core samples from Timahdit. The second phase of the project has also started with the gathering of the data necessary to the environmental impact study.

26 Office National des Hydrocarbures et des Mines Activity Report 2008 MINING EXPLORATION

The year 2008 was marked by the diversification Precious metals of the research themes and the concentration of the works on the most promising areas,the Azouggar N’Tilili (Au, Pb, Zn, Ag) strengthening of the conceptual targeting to help emerge new objectives, and the renewal In Azouggar N’Tilili polymetallic-gold prospect, of the ISO 9001-version 2000 certification of situated SW of Low Draa, at 50 km to the East the mines laboratories. of Tan Tan city, a synthesis of the results of all works carried out was prepared. The resources During FY 2008, the mining exploration works, highlighted are estimated according to two carried out in a mining domain made up of 855 variants : 452 500 t to 5.8 g/t Au ; 5.4 % Pb ; permits, focused on 26 objectives distributed 5.7 % Zn and 44.8 g/t Ag for an average as follows : precious metals (16), base metals thickness of 1.4 m or 1 105 600 t at 3.6 % Zn ; (8) and rocks and industrial minerals (2). 2.3 g/t Au ; 2.2 % Pb and 19 g/t Ag for an average thickness of 4 m. An international invitation As in the previous years, works were carried to tender was issued for this project transfer. out on the most promising zones of the Anti- Atlas, Haut-Atlas and Jebilets-Guemassa with Glibat Lafhouda (Nb, Ta, Ree) a sustained research effort in the southern provinces. Globally, the interest shown in the In Glibat Lafhouda prospect, located at 75 km projects of Azouggar N’Tilili (polymetallic-gold), SW of Awserd, a geological survey over 10 Glibat Lafhouda and Twihinate (Fe, Nb, Ta, U sq km at scale 1/1000 and a reconnaissance and light rare earth elements) and gold structures survey by gravimetry over 10.2 sq km were of Lafwila was confirmed. A new prospect was conducted with a view of achieving the deep also identified at Lamlaga (Fe, Nb, Ta, U and rootedness of massive carbonatite zones and light rare earth elements). iron oxides.

Following the conclusive results of the A second survey of 8 core drills totaling orientation study carried out on Azouggar N’Tilili 1 042 m was carried out in order to better (polymetallic-gold) project, an open invitation to delineate the geometry of mineralized bodies. bid was issued for the project transfer. The results obtained so far are as follows :

Concerning the Mine laboratory activity, in addition to the production front, the year 2008 was marked by the renewal of certification through a follow-up auditing, in accordance with ISO 9001 version 2000. It should be recalled that the certification was obtained in 2007.

The results obtained by subject and project are as follows :

27 Office National des Hydrocarbures et des Mines Activity Report 2008 Name of drilling Nature of the surrounding Grades and thickness

0.79 % Nb O , 846 ppm Ta O , 1261 ppm U O , GLS-7 Iron oxide 2 5 2 5 3 8 4708 ppm REE and 43 % Fe2O3 over 29 m. 0.11 % Nb O , 44 ppm Ta O , 125 ppm U O , 1450 GLS-8 Carbonatites 2 5 2 5 3 8 ppm REE over 129 m.

0.10 % Nb O , 46 ppm Ta O , 142 ppm U O over GLS-9 Carbonatites 2 5 2 5 3 8 36.8 m.

0.23 % Nb O , 182 ppm Ta O , 478 ppm U O , 2050 GLS-10 Iron oxide 2 5 2 5 3 8 ppm REE and 22,8 % Fe2O3 over 52 m.

Twihinate (Nb, Ta, U, Au, Fe) A survey of 6 core drills totaling 836.80 m was carried on. The most encouraging results Twihinate prospect, located at about 250 km were obtained on TWS1 and TWS5 drillings as to the south of Dakhla, was discovered in follows : 2007. In this prospect, a geological survey at scale 1/1000 over an area of 6.25 sq km and a covering by gravimetry were conducted in order to control the deep rootedness of mineralization. The surface sampling yielded grades reaching 1.4 % Nb2O5 and the sum of rare earth elements (La+Ce+Nd+Eu+Pr+Sm) generally ranges between 0.5 and 1.5 % with a maximum of 6 % REE. The grades of total iron are included between 50 and 60 % and those of gold are indices (300 ppb).

Name of drilling Nature of the surrounding Grades and thickness

0.36 % Nb O ; 185 ppm U O and 54.4 % Fe O Iron oxide 2 5 3 8 2 3 over 16 m TWS1 Iron oxide breccia 0.25 % Nb2O5 and 194 ppm U3O8 over 55.9 m

Carbonatites 0.35 % Nb2O5 over 52.4m

Iron oxide 0.186 % Nb2O5 ; 345 ppm U3O8 and 47.7 % Fe2O3

TWS5 Iron oxide breccia 0.269 % Nb2O5, 500 ppm U3O8 over 36.9 m

Carbonatites 0.429 % Nb2O5, 650 ppm U3O8 over 41.7 m

28 Office National des Hydrocarbures et des Mines Activity Report 2008 Lafwila (Au, Ag, Pb, Cu) Tichka-Est (Au)

On this project located at about 300 km to the The project of Tichka Est, situated at 140 km South of Dakhla (Awserd province) and following South of Marrakech, showed grades ranging the encouraging results obtained on the trenches between 1 and 14 g/t Au at the occurrence of carried out in 2007 (10.4 g/t Au over 4 m), a the first sampling. Following these encouraging first survey of 4 core drills totaling 531.6 m was results, a detailed geological survey at 1/500, carried out in an effort to recognize the down covering an area of 24 acres, and a litho- dip of gold bearing structures. The targeted geochemical sampling with results ranging structures were intercepted with apparent between 0.1 and 33 g/t Au were carried out. grades of 6 m for the second drilling and 6 A geophysical study showed that the structure m and 2.5 m for the fourth drilling. Chemical is deeply rooted. The alluvial prospecting analyses are carried out on the samples taken. conducted in this prospect yielded grades reaching 22 g/t Au. Madnat As Sadra (Au, Nb, Ta, U, Platinoïds,..) Bas Draa (Au) In Madna As Sadra prospect, located at 200 km SE of Dakhla (Awserd province), the geological In the Bas Draa inlier (Guelmim, Tan Tan and control of aeromagnetic and spectroardimetric Assa Zag provinces), prospecting continued in anomalies permitted to highlight, in El Ghassaliat the Upper and Lower Proterozoic formations in sector, quartzose structures with index grades Ayoun Lghoumane prospect. Samples taken ranging between 0.2 and 0.8 g/t Au on metric in the iron ore quartzose structures encased in thickness and iron ore carbonatites with grades sandstones and Pl pelites or in copper indices borne by quartz veins encased in Infracambrian reaching 0.5 % Nb2O5 and 470 ppm Ta2O5, in bed formations yielded indices in gold (<1 Drag sector, and 0.4 % Nb2O5 ; 520 ppm Ta2O5 g/t). Samples taken on TI-1 cupriferous index and 350 ppm U3O8 in Al Farnan sector. revealed copper grades ranging from 1 to 5 %, Toufrite structure yielded grades reaching 31 g/t Au ; 2.2 % Pb and 0.2 % Zn for a thickness up to 15 m and an extension of about 150 m.

Aïn Karma (Au, Pb, Ag, Zn)

In Aïn Karma prospect, located at about 50 km to the North of Tan Tan, the geological control concerned the alteration zone circumscribed by remote sensing as well as the geochemical anomalies to Sn et W. The results obtained show weak grades in gold (<1 g/t) and the chemical analyses pertaining to Sn and W are underway.

29 Office National des Hydrocarbures et des Mines Activity Report 2008 Ouday Çfa (Au, Pb and platinoïds) Tidili (Au)

On Ouday Çfa prospect, located at 300 km In Tidili prospect, located at 90 km to the West of to the North of Dakhla (Awserd province), Ouarzazate (Ouarzazate province), a geological the geological control of aeromagnetic and reconnaissance by sampling and a geological radiometric anomalies by mapping at scale mapping were conducted and yielded indexed 1/25 000 over 22 sq km and sampling of pyrite results in gold (0.1 to 0.3 g/t), in Cu (1.2 %) and quartz veins and iron oxides enabled to take in Ag (24 g/t). 406 samples that are undergoing chemical analyses. Ain Chair (Au)

In Aïn Chair prospect, located at 300 km to the Kerdous (Au) South of Oujda (Figuig province), a geological control by mapping at 1/25 000 over 54 sq km In the prospect of Assif M’kkorn valley, located at and sampling have been carried out.The results 120 km NE of Tiznit (Tiznit province), the control obtained so far are weak and range between of goldbearing alluvional anomalies by mapping 0.1 and 0.8 g/t for gold and do not exceed at scale 1/25 000 over 22 sq Km, by soil 2 % for copper. geochemistry and litho-geochemical sampling was carried on (885 rock and soil samples).The General exploration (precious metals) first profiles of soil geochemistry show anomal gold contents, with grades ranging between 10 RG-MP South zone (Au, platinoïds) and 100 ppb and a maximal value of 942 ppb Au. The general exploration carried out in the central part of Adrar Soutouf (Awserd province), by soil A pilot study by conceptual targeting was carried geochemistry (960 sq km with ONHYM’s own out as part of an external expert valuation. means), geophysics, mapping and sampling The targets identified will undergo a detailed has permitted to highlight Lamlaga structure control. which yielded grades reaching 0.6 % Ce ;

0.5 % La ; 0.2 % Nd ; 0.17 % Nb ; 77 % Fe2O3 Khzama (Au, Ag, platinoïds) and 160 ppm U.

In Khzama project, located in Sirwa massive On the other hand, the synthesis of data from (Ouarzazate province), the control of alluvional the soil geochemistry survey carried out by geochemical anomalies helped to localize a subcontracting over an area of 5000 sq km in fracturation zone with a general orientation of Awserd region helped to define new anomalies N-S to NW-SE, made up of ferruginous quartz, in U, Pb, Zn, Cu, Ni, Cr, Co, Au, Pd and Pt, in mylonites and gossans with an extension of Glyeb Adrag, Gleybat al Hay Aç Çamet, Twirga several hundreds of meters. Most samples and Lahwida prospects, in Nb-Ta in Tagnaddest analyzed show gold grades ranging from 0.1 zone, and Au in Imakrene Lakhdar. to 12 g/t.

30 Office National des Hydrocarbures et des Mines Activity Report 2008 Ighir ou Roumi (Pb, Zn, Ag)

At Ighir ou Roumi, located in central Morocco, at 5 km NE of Moulay Bou Azza, a zone mineralized with Pb-Ag was followed in surface over 200 m. Four drillings, totalling 448.60 m, were executed and intersected the targeted structures. The latter are constituted of microdioritic dykes with crushing zones and quartz veins with sulfides (pyrite, galene, sphalerite and mispickel).

The results of analyses show grades reaching Base metals 6.54 % Pb and 4.78 % Zn over inframetric thicknesses. Grades in Ag may reach 238 g/t Bled Jemaa (Pb, Au, Ag, Zn) and those of Au 1.04 g/t.

In Bled Jemaa, located in central Morocco, at A preliminary evaluation of the resources yielded 1,5 km SW of Moulay Bou Azza, the core drilling 212 205 t to 3.70 % Pb, 2.71 % Zn and 94 g/t works that started at the end of 2007 were Ag. completed by the spudding of the 6th drilling. Sud Bani (Fe)

The main zone bearing mineralization, composed In Sud Bani prospect (Tan Tan province), located of microdiorite dykes, crushed schists and at 70 km SE of Tan Tan, where surface grades quartz lens with sulfides, has been cross cut range from 32 to 57 % in total ore, a survey by all the drillings. The most promising results of 13 core drillings totalling 510 m is under are those of drilling N°1 and N°2 where grades way on the Zini West prospect with ferriferous reach 19 g/t Au ; 3.24 % Pb ; 2.2 % Zn and mineralization. 52 g/t Ag over thicknesses less than 1 m. Concerning the 4th and 5th drilling, the results The first drilling, stopped at 22 m, has cross reach 2.33 g/t Au over 0,85 m and 4 g/t Au cut a mineralized level of iron oxide over a reel over 0.35 m, respectively. Towards NE and SW thickness of 2.6 m, whereas the 2nd drilling, ends of the index, the impacts of drilling N°3 stopped at 29 m, has cross cut two sub- and N°6 are indexed. horizontal ferriferous levels with grades of 1 m and 3 m, respectively. A preliminary assessment of the resources gave 339 423 t to 3 g/t Au, 0.85 % Pb, 0.50 % Zn Achemmach «ONHYM – Kasbah Resources and 21.3 g/t Ag (variant 1) or 495 003 t to 2.20 Ltd agreement» (Sn) g/t Au, 0.60 % Pb, 0.36 % Zn and 15.7 g/t Ag (variant 2), or the equivalent of 1.02 t or 1.09 t In the tin-bearing deposit of Achmmach, located in metal gold. at 50 km NE of central hercynian massive to the

31 Office National des Hydrocarbures et des Mines Activity Report 2008 South of Meknès (El Hajeb province), a feasibility vein type at Bougader (Pb-Zn). These works study has been carried out by the Australian include geological surveys, rock sampling and company Kasbah Resources. Since the start of core drillings. drilling works on November 2007, 25 drillings totalling 7997 m divided into 3 phases were At El Mna, the drilling that began in 2007 was carried out until the end of September 2008. carried on and reached interval 470.15 m. It first intersected felsic volcanic facies, then The results obtained are encouraging and clay sediments. The units met do not permit show several mineralized intersections : 13.6 to explain the magnetic anomaly observed in m with 0.5 % Sn (AD18), 12 m with 1.2 % Sn surface. A pulse – EM survey was carried out (AD19), 46.3 m with 0.8 % Sn (AD20), 36.5 m and did not detect any anomaly. The source of with 0.8 % Sn (AD21), 36.5 m with 0.8 % Sn, anomalies remains unexplained. 6.9 m with 1.85 % Sn (AD21), 25.0 m with 1.29 % Sn (AD25). At Bou Gader, the core drilling survey that began in 2007 in this prospect was followed by the An updating of the resources model of the execution of the 5th core drilling (BGS5) that was deposit according to Jorc Australian norm has stopped at interval 261 m after crossing a series been recently completed and has permitted to of black pelites with pyrite and/or pyrrhotine define inferred resources of 6MT with 0.9 % Sn dissemination. The project was stopped due to for cut grade of 0.6 % Sn. Mineralurgical tests non encouraging results. are being carried out by SGS cabinet. Tekna «ONHYM – CMG Agreement» (Polymetallic)

In Tekna district, located West and South West of Marrakech (Al Haouz province), the synthesis of former works permitted to select 3 magnetic anomalies (Moulay Al Amine, Lamrah and Imarirne) on which an electric prospecting using MPP method was carried out in partnership with Russian experts. The interpretation of anomalies obtained permitted to recommend 3 reconnaissance core drillings totalling 1 800 m.

Jebilet «ONHYM – CMG Agreement» Alous District «ONHYM - Odyssey Resources (Polymetallic) Ltd Agreement» (Cu, Ag)

In Jebilet prospect, located NW of Marrakech In Alous district, located in the Anti-Atlas, (Sidi Youssef Ben Ali province), works at about 120 km SE of Agadir (Taroudant concentrated on mineralization prospecting of province), the works focused on finalization polymetallic sulfurous mass type at El Mna and of an orientation study that recommended an

32 Office National des Hydrocarbures et des Mines Activity Report 2008 additional exploration program to demonstrate Geographic Information System (GIS) on the the economic viability of the project. Anti-Atlas, dedicated to uranium exploration.

Kalaat Sraghna – Mkhalif (Cu, Pb, Zn) In addition to the exchange of geological, geochemical and geophysical data, the works In Kalaat Sraghna – Mkhalif district, located in pertaining to the interpretation of airborne the eastern Jebilets, NE of Marrakech, the works geophysical data were carried out and first focused on Ouled Chorfa copper bearing concentrated on the achievement of geophysical index where rock sampling showed copper grids, the crossing of geological, geochemical, grades exceeding 6 % Cu in some samples. geophysical data and remote sensing under ArcView and non supervised classification of In order to recognize the bottom of these radiometric data. structures, two core drillings totalling 210.65 m were carried out and intersected zones with Finally, a compilation of thematic data and their quartz veinlets more and less mineralized with crossing were carried out. chalcopyrite traces and malachite coatings over a dozen of meters. Copper grades are weak General exploration (base metals) and do not exceed 0.25 m over 1 m. In North Ment sector, located in central Morocco, At the same time, detailed geological surveys of a geochemical survey was conducted with the copper veins of Kharouba and Snoussine old taking of 700 alluvional samples, 803 stream mines were carried out. The results at the level samples and 14 rock samples. Several multi- of Kharouba structures show grades that reach elementary anomalies in Pb and Zn as well as 6 % Cu and 400 ppm Co. anomalies in Cu and Au were highlighted.

Toundout (Cu, Au, Ag) The control of these anomalies undertaken revealed, in a quartz vein encased in granite, In Toundout sector, located on the southern side grades of 4.8 g/t Au, 0.45 % Pb, 10 g/t Ag and of central Haut Atlas, a geological, geophysical 10.4 % As over a thickness on the range of 1 and structural reconnaissance survey was meter. conducted. In the veins of Abidli district, where copper grades are relatively high and reach Research for uranium in the Southern provinces 5 %, geophysical surveys were conducted and started East of Dakhla, around the Cretaceous- showed the limited deep-seatedness of these Proterozoïc contact for the achievement of 13 structures. radiometric profiles. Petrographic studies show that this concerns stripped carbonatites that «ONHYM –Areva Draft Agreement» on the extend to 900 m with metric thicknesses and Anti-Atlas (Uranium) that show a mineral association with monazite. The draft agreement between ONHYM and Cerium grades may reach 1 187 ppm and Areva NC concerns the implementation of a lanthanum grades 762 ppm.

33 Office National des Hydrocarbures et des Mines Activity Report 2008 Finally, a geological survey at scale 1/1000 results led to the selection of Telouet fibrous was conducted in the district with systematic clays indexes for development by core radiometric measurements. 102 samples were drillings ; taken along the profiles for chemical analysis (multi element : U, Th and TR) and 13 samples • The Gharb Tertiary basin between Arbaoua and for the petrographic and mineral study. Ouazzane where 339 samples were taken in view of conducting chemical analyses and Rocks and industrial minerals identifications by X ray diffraction. The latter helped to highlight two sectors containing sepiolite clays (South of Arbaoua and SE of General exploration for rocks and industrial Tnine Serafah) ; minerals has focused on the following : • The Tertiary basin of Guercif and Taourirt- • Feldspaths and kaolin of Jbel Zerhoun (near Oujda corridor where core drillings were Moulay Idriss Zerhoun) where 6 samples were conducted on Aït Ali target, located at 20 km collected to undertake microscopic studies NW of Taourirt, in view of delimiting fibrous and technological tests ; clays levels in depth ; • Dolomies in central Morocco (Oued Beht • Ouarzazate Tertiary basin, extending from and Sefrou province) and in calcareous ridge Telouet to the West until Tinrhir to the East, (between Chefchaoun and Fnideq) where 43 where 316 samples have been taken. The samples have been taken for analysis.

34 Office National des Hydrocarbures et des Mines Activity Report 2008 Objectives achieved in 2008

Objectives Commodity Provinces Works implemented Precious metals Azouggar N’tilili Au, Zn, Pb, Ag Tan Tan international invitation tender Geology, geophyics, topography, drillings : Glibat Lafhouda Nb, Ta, REE Awserd 1042 m Twihinate Nb, Ta, REE, U, Au Awserd Geology, geochemistry, drillings : 836.80 m Geology, sampling, trenches : 24 m3, Lafwila Au, Ag, Cu, Zn Awserd drillings : 531.60 m Madnat As Sadra Au, Ag, Cu, Zn Awserd Geology, lithogeochemistry, soil sampling Tichka-Est Au Al Haouz Geology, sampling, geochemistry, alluvionary Guelmim, Tan Tan, Bas Draa Au, Ag, Cu Geology, sampling, alluvionnary Assa Zag Ain Karma Au, Ag, Cu, Pb Guelmim Geology, sampling Ouday Çfa Au, Ag, Cu, Zn Awserd Geology, lithogeochemistry, sampling Kerdous Au, Ag, Cu, Pb, Zn Tiznit Geology, soil sampling Khzama Au, platinoïdes Ouarzazate Geology, sampling Tidili Au, Ag, Cu Ouarzazate Geology, sampling Ain Chair Au Figuig Geology, sampling Rg- Mp- South Zone Au, Pt, REE Awserd Geochemistry, geology, sampling Base metals Bled Jemaa Pb, Zn, Ag, Au Khénifra drillings : 93.10 m Ighir Ou Roumi Pb, Ag, Zn, Au Khénifra Geology, sampling, drillings : 448.60 m Sud Bani Fe Tan Tan geology, lithogeochemistry, drillings : 51 m Achmmach «Kasbah Sn El Hajeb Geology, sampling, drillings : 7997 m Resources» Geology, sampling, drillings : 568.80 m Jebilet (CMG-ONHYM) Polymetallic Sidi Youssef Ben Ali (ONHYM : 227.52 m) Tekna (CMG-ONHYM) Polymetallic Marrakech Menara geophysics Alous District «Odyssey» Cu, Ag Taroudant Feasibility study Geology, geophysics, sampling Kalaat Sraghna-Mkhalif Cu, Pb, Zn Kalaat Sraghna drillings : 210.65 m Toundout Cu, Pb, Zn, Ag Ouarzazate Geology, geophysics, sampling Ouarzazate, Zagora, Preparation of GIS, geophysical Anti-Atlas (ONHYM- Uranium Tata, Taroudant, Tiznit, interpretation, geochemistry, structural study Areva Nc) Guelmim… of satellite images Geology, geochemistry, scintillometry, Rg.Mb Cu, Pb, Zn, Sn, W, U Khénifra, Awserd sampling Rocks and industrial minerals Aït Ali Fibrous clays Taourirt Geology, sampling, drillings planting Fibrous clays, Taza, Khémissat, Geology, sampling, chemical and Rg. Rmi dolomies, quartz Ouazzane, Tetouan mineralogical analyses

35 Office National des Hydrocarbures et des Mines Activity Report 2008 MINING EXPLORATION LOCATION MAP FOR OBJECTIVES ACHIEVED IN 2008

-16° -14° -12° -10° -8° -6° -4°-2° Sebta !( Tanger !( MEDITERRANEAN SEA !( Al Hoceima Melilla Tetouan ! Larache ! !( Nador !( R i f Oujda !( Taza 23 34° !( 34° !( Fes Rabat !( Meknès 15 !( Casablanca !( S 0 200 Km LA El Jadida 17 !( 14 M. AT

Khénifr!( a Midelt Bou Arfa !( Quaternary !( Safi !( 13 21 S !( Mesozoic 18 LA Er-Rachidia Figuig 32° 32° !( Cenozoic Marrakech Ht. AT 19 ! Paleozoic Essaouira !( 22 !( Erfoud 12 Ouarzazate Proterozoic 6 !( 20 !( 11 Agadir !( Zagora 30° 30° TLAS Tata 10 !( ANTI A Ifni Akka TLANTIC OCEAN !( !( A PRECIOUS METALS 8 7 Tan-Tan !( Assa ’ !( 1. Azouggar nTilili (Au, Zn, Pb) Tarfaya 1 28° 2. Glibat lafhouda (Nb,Ta, U, Fe ) !( 16 !( Zag 3. Twihinate (Nb,Ta, U, Fe, REE, Au ) La'Youne !( 4. Lafwila (Au)

!( Smara 5. Madnat As Sadra (Au,Pt)

!( Bou Kra 6. Tichka-Est (Au) Boujdour !( 26° 7. Bas Draa (Au, Ag, Zn) 8. Ain Karma (Au, Ag, Zn) BASE METALS 9. Ouday Çfa (Au) 14. Bled Jemâa (Pb, Zn, Ag, Au) 10. Kerdous (Au) 15. Ighir Ou Roumi (Pb, Zn, Ag,) 11. Khzama (Au, Ag, Pt 24° 16. Sud Bani (Fe) 12. Tidili (Au, Cu, Ag) Ad-Dakhla !( 17. Achmmach (Sn) 13. Ain Chair (Au) 18. Jebilet (Polym) 5 Awserd !( 19. Tekna (Polym) 3 9 2 20. Secteur d’Alous (Cu, Ag) 4 21. Kalaat Sraghna-Mkhalif (Cu,Pb,Zn) 22. Toundout (Cu, Au, Ag)

Lagwira !( ROCKS AND INDUSTRIAL MINERALS 23. Ait Ali (Clays)

36 Office National des Hydrocarbures et des Mines Activity Report 2008 Laboratories’ activity Petrographical and mineralogical analyses

The laboratories’ activity in 2008 was especially Petrographical and mineralogical studies marked by the renewal of ISO 9001 version involved 269 samples broken down into 2000 certification as a result of the first follow 144 petrographical studies, 125 studies of up and monitoring auditing. The provisions of alluvional and artificial concentrates. The services related to mineralogical, chemical and studies concentrated on samples from ONHYM mineralurgical studies concerned samples from prospects and more specifically those of rare ONHYM worksites and third parties. earth projects.

Certification maintained Mineral processing

As part of the preparation of the follow up In 2008, the number of samples prepared for and monitoring auditing for ISO 9001 version chemical analysis reached 14 796 and were 2000 certification, obtained in March 2007, the distributed as follows : following actions were undertaken :

• Updating of documentation related to quality Worksite Number of samples system management ; ONHYM projects 12.356 • Implementation of in-house audits ; Subsidiaries and third parties 2.104 • Assessment of 2007 objectives and of process performance indicators ; Tests 336

• Conduct of a customer satisfaction survey Total 14.796 and interviews with clients on the site ; • Preparation of the clients’ claims report and Concentration tests by gravity and magnetic corrective and preventive actions ; separation were carried out on the ore Ta, Nb, • Preparation of the objectives planning and the U and rare earth of Glibat Lafhouda. training plan for the year. Flotation tests were carried out, in pilot plants, Mineralogy on behalf of CMG, SMI and AGM.These tests involved 50 days of pilot plant in operation. Sample preparation Mineralogical chemistry In the course of this year, a total of 518 samples divided into 213 of thin plates, polished plates, The number of ore grade assays conducted 101 polished sections, 124 alluvional and by the Mineral Chemistry Department in 2008 artificial concentrates were prepared. reached 199 780.

37 Office National des Hydrocarbures et des Mines Activity Report 2008 These assays correspond to 11 934 samples • Major elements analysis : SiO2, Al2O3, CaO, and concentrated on the following : MgO, Na2O, K2O, Fe2O3, FeO, MnO, TiO2, P O and fire loss ; • Gold analysis by humid and dry method ; 2 5 • Analysis by conventional methods of high • Multi-elementary analysis : Ag, As, Ba, Be, grades in Cu, Pb, Zn, Fe, CaCO , BaSO , Bi, Ca, Cd, Co, Cr, Cu, Fe, K, Li, Mg, Mn, 3 4 SrSO , CaF , MnO , MnO, total Mn, ferric Mo, Na, Nb, Ni, Pb, Sb, Sr, V, Y, Zn ; 4 2 2 iron, carbonates, sulfur, sulfates, Chlorides, • Analysis of rare earth elements : La, Ce, Sm, wetness and salt insolubles, real density of Eu, Gd, Tb, Dy, Ho, Er, Yb, Lu, Tm ; powder samples ; • Precious metals analysis : Pt, Pd, Ir ; • Other analyses : Th, U, La, Ta, Sn, W.

DISTRIBUTION OF ACHIEVEMENTS

Worksite Number of samples Number of ore grade assays

ONHYM worksite 10 701 194 528

Subsidiaries and third parties 1 233 5 252

Total 11 934 199 780

38 Office National des Hydrocarbures et des Mines Activity Report 2008 MINING PARTICIPATIONS & COOPERATION

Partnership for mining exploration and of two new draft agreements, a Memorandum development witnessed a new dynamics in of Understanding, (MoU), and two transfer 2008. As a matter of fact, the efforts made for agreements.Three amendments were also promoting mining deposits led to the conclusion concluded.

Draft agreements and MoU

ONHYM’s partners Country Description Date of signature

Draft agreement for the implementation of a digital AREVA NC France GIS on the Anti Atlas 19 February 2008 dedicated to uranium exploration

Draft agreement for the Xtract Energy PLC Great Britain evaluation of the uranium 12 March 2008 potential of Argana corridor.

MoU establishing a cooperation framework National Mineral between ONHYM and Development Corp. Ltd. India 22 May 2008 NMDC in the field of (NMDC) mining exploration and development

Mining prospect transfers

ONHYM’s partners Country Objective Date of signature

Compagnie Minière des Koudiat Aïcha mining Morocco 31 March 2008 Guemassa (CMG) domain (polymetallic)

Morocco (subsidiary of the Jbel Malek mining domain Kasbah Gold 5 June 2008 Australian company (gold) Kasbah Resources)

Other transfers relating to Oumjérane, On the other hand, ONHYM proceeded in Zgounder, Sidi Bou Othmane, Bouissafene early 2008 to the launching of an international and Boudkek deposits, are under negotiation invitation to bid with a view to a partial or total with private companies. transfer of Azouggar N’tilili polymetallic gold deposit in Tan Tan region to the South of Agadir.

39 Office National des Hydrocarbures et des Mines Activity Report 2008 Amendments

ONHYM’s partners Country Description Date of signature

Amendment to MoU related to the evaluation of the zinc potential in High Shaanxi Fuyuan INT’L INC. China 21 March 2008 and Middle Atlas and the Rif extending the duration for 24 months

Amendment to draft agreement on Achmmach Kasbah Resources Ltd Australia 30 January 2008 tin deposit extending its duration for 12 months

Amendment to draft Mauritanian Office for agreement covering Geological Research Mauritania 21 January 2008 cooperation actions (OMRG) scheduled for 2009

Security and environment • Active participation in the meetings held by the National Committee of Environmental • Aid and support of ONHYM’s partners in Impact Studies within the Environment and preparing environmental impact studies with Water Department ; regard to seismic acquisition, petroleum drillings, and oil shale development (Eni, • Preparation of sanitary and security reports Repsol, Hunt Oil, Transatlantic, Anschutz, of the 1st and 2nd half of 2007 and 1st half of PetroCanada, Circle Oil, and Pel) ; 2008.

40 Office National des Hydrocarbures et des Mines Activity Report 2008 MINING DRILLING : A SIGNIFICANT REVIVAL OF THE ACTIVITY

The year 2008 was marked by the notable This year was also marked by the implementation revival of the drilling activity which recorded a of three drilling campaigns in the southern significant increase of 52 % in volume compared provinces, namely at Glibat lafhouda, Twihinate with 2007. and Lafwila.

The number of meters drilled reached The volume of drilling works is shown in the 12 582.15 m against 8 277.40 m in the following table : previous year.

Realizations

This increase in volume is accounted for by a marked revival of work on behalf of third parties. Thus, a work program was implemented for the benefit of CMG at Koudiat Aïcha and Hajar with a total of 5 884.15 m of drillings and another work program for the benefit of SMI with a total of 2.208.35 m at Imiter.

Main Number of core drills Worksite Province Rotary (ml) Total (ml) operator drillings (ml)

Work by ONHYM Glibat Lahfouda ONHYM Awserd 8 1 042.30 1 042.30 Twihinate ONHYM Awserd 6 836.80 836.80 Kalaat Sraghna ONHYM Kalaat Sraghna 2 210.65 210.65 Lafwila ONHYM Awserd 4 531.60 531.60 Blad Jemaa ONHYM Khénifra 1 93.10 93.10 Ighir Ou Roumi ONHYM Khénifra 5 487.30 487.30 Sud Bani ONHYM Tan Tan 2 51.00 51.00 Jebilet ONHYM-CMG ONHYM Marrakech 0.8 227.52 227.52

Total work by 28.8 3 480.27 0.00 3 480.27 ONHYM

Work under agreement Partners (partners’share)

Jebilet CMG Marrakech 1.2 341.28 341.28

Total work under 1.2 341.28 0.00 341.28 agreement

41 Office National des Hydrocarbures et des Mines Activity Report 2008 Main Third party work operator

Koudiat Aïcha CMG Marrakech 22 4 788.60 62.00 4 850.60 Timahdit Petrobras Khénifra 1 125.00 125.00 Aïn Tekki SSM Mohammedia 1 339.20 203.90 543.10 Hajar CMG Marrakech 3 766.55 267.00 1 033.55 Imiter SMI Ouarzazate 10 2 181.35 27.00 2 808.35

Total third party 37 8 200.70 559.90 8 760.60 work

Grand total as of December 31, 2008 67 12 022.25 559.90 12 582.15

Realizations achieved in 2008 compared to annual budgetary estimates are given in the following table :

Mining drillings Nature of works Estimates Realizations Rate of realization

ONHYM’s own means 7 520.00 3 480.27 46.28 % Under agreement 2 085.00 341.28 16.37 % Third party 3 000.00 8 760.60 292.02 %

Total 12 605.00 12 582.15 99.82 %

On the managerial front, service contracts governing ONHYM drilling programs came into force this year in accordance with the new managerial methods adopted by the office since 2007.

42 Office National des Hydrocarbures et des Mines Activity Report 2008 HUMAN RESOURCES

Staff The number of departures recorded at the end of December 2008 reached 16. As of December 31st, 2008, ONHYM staff was 942 agents of whom 192 engineers and Harmonization of personnel managers, 388 supervisors, 25 employees and management rules 337 workers. The harmonization works undertaken during 36% 20% 2008 helped to close this file. The results are summed up in the following : • Preparation of 104 harmonized decisions and

36% 20% memoranda ;

3% • Preparation of 64 ONHYM harmonized 41% management rules, resulting from the newly Engineers & executives Supervisors set up decisions and procedures ; Employees Workers • Identification of 17 performance indicators ; 3% The rate of supervision, set at 2041% %, remains • Examination of 13 management acts by an below the standards of bodies dedicated Engineers & executives Supervisors ad hoc committee ; the results of the latter’s to research. The objective is to reach, in the Employees Workers works will be submitted to Human Resources medium term, a rate of 30 % of the staff. 2000 committee‘s approval. 1641 1571 1538 1499 1477 150 Staff0 evolution 1434 1359 Attendance time management 1000 947 942

2000 500 The clocking in/clocking out system is 1641 1571 1538 1499 1500 1477 1434 operational since May 2, 2008 and concerns 0 1359 2000 2001 2002 2003 2004 2005 2006 2007 2008 the whole staff working in Rabat (headquarters 1000 947 942 and Base). 500

0 2000 2001 2002 2003 2004 2005 2006 2007 2008

The Office staff has recorded a regular decrease for the last decade as a result of the combined effect of departures for retirement, interruption of recruitments and voluntary departure operation.

Nonetheless, the recruitment operations are undertaken taking into account the positions provided by the outline law (34 in 2008).

43 Office National des Hydrocarbures et des Mines Activity Report 2008 Social activities • 369 children attended summer camps in Ben Smim and Agadir. Housing loans Loans for car purchase • The loan commission approved the granting of 28 loans for housing and equipping for the • 2 employees were granted a loan representing total amount of 3.269.400 DH. the amount of 132.000 DH to buy a car.

Training Cultural activities

• 112 children belonging to ONHYM personnel Key indicators registered for the year 2008-2009 and benefited from multiple activities : language In 2008, the activity pertaining to training focused courses, data processing, civil education, on the following : chess, sewing and manual work, music, • The number of actions devoted to training educational outings and associative actions. reached 160 totalling 1 890 hours man/day training representing a total cost of 6 164 KDH ; Pilgrimage • The enrollment of 34 employees in English • 15 employees were taken in charge by the courses as part of ONHYM-Amideast Office and sent to make pilgrimage to the agreement for the implementation of 2008 Holy place of Islam. program. These courses totalled about 336 Medical assistance MDT split into 12 sessions for a cost of 126 KDH ; • 158 medical examinations were provided and 3 300 benefited from coverage for • The total cost of these actions amounts to hospitalization, biological checks and X-rays ; 6290 KDH including training provided from budget partners. • 484 employees received flu vaccines ; • 42 visits were systematically organized in the The following table shows the physical and work sites ; budgetary indicators pertaining to the training activity in 2008 : • 91 ophthalmology medical examinations ; • 2 263 employees benefited from collective Indicators Number health care ;

• 87 employees donated blood. Number of training actions 172 Number of participations 459 Summertime centers Number of man-day-training 2 226 Number of beneficiaries 265 • 260 employees benefited from stays in summertime centers of Cabo-Negro, Ifrane Cost in 1000 DH 6 290 and Kettara ;

44 Office National des Hydrocarbures et des Mines Activity Report 2008 DISTRIBUTION OF TRAINING DATA/DOMAIN

Number of man/days of Areas of training Number of actions Number of participants training

Congress, forum, colloquiums 20 34 140 and seminars

Exploration, exploitation processing and technical 39 92 434 subjects

Data processing - Office 15 23 85 automation and IS Personnel management and 42 152 284 human resources Quality, security and 10 19 61 environment Management techniques and 31 51 133 other subjects

Long- term training 3 4 753

English classes 12 84 336

Total 172 459 2 226

Training related actions • Organization and supervision of 250 students • The granting of 890 scholarships for the from various institutions of higher education benefit of 430 ONHYM staff children fora (Schools, Faculties and Institutes) ; total cost of 132 KDH.

45 Office National des Hydrocarbures et des Mines Activity Report 2008 COMPUTER TECHNOLOGY & INFORMATION SYSTEM

The Information System Master Plan (ISMP) • Encourage the setting up and development worked out in collaboration with an international of project management concept, set up as consultant over a five-year period was finalized a new operation mode for the conduct of in 2007. mining and petroleum projects • Encourage the eligibility of the Office to the Computer projects are grouped into a folio State control. of thematic programs and are conducted according to an IS governance mode, and in Human resources accordance with the provisions of the operation charter governing the relations between the As far as human resources are concerned, two implied parties. main IS projects have been conducted : Mines and Oil • Consolidation of the human resources information system ; After a detailed survey of petroleum exploration • Implementation of attendance time needs in information system, the GIS project management system. The system is development was launched. The other projects operational and the associated project is in of the core business launched as part of the the conclusion stage. Information System Master Plan aim at securing and organizing the heritage of data generated Common means by mining and petroleum works and following the life cycle of various data and documents. As for management of the documentary heritage, the service offer has been modernized The challenge behind these projects is to master with the use of the intranet for the publication of the heritage of data and documents by using several documentary products. the latest information technology by optimizing costs and guaranteeing the security, viability Infrastructure and availability of the documentary resources. Infrastructure projects are conducted to Finance logistics accompany the needs of IS projects with

regard to equipment, network infrastructure In this field, structuring projects of ISMP such and storage, to ensure the security of data by as the restructuring and analytical accountancy, putting the latest information technology means the implementation of integrated management at the service of oil and mining exploration. software and the project management mode have been launched. The main objectives set Thus, the needs of web site projects, integrated by the three projects are the following : management software, the intranet, GIS Oil and • Support the evolution of the organization ; GIS Mine have been integrated and launched.

46 Office National des Hydrocarbures et des Mines Activity Report 2008 Petroleum exploration permits and reconnaissance licenses map KINGDOM OF MOROCCO Petroleum exploration permits and MEDITERRANEAN SEA reconnaissance licenses map Tanger Tetouan Nador 48 130 Melilla 131 Nador 49 Al Hoceima 47 109 52 60 Oujda 56 53 12 101 110 111 55 54 106 103 113 150 149 58 57 105 112 59 RABAT 102

14 51 13 Casablanca 50 136 11 158 8 9 7 159 6 Safi107 15 135 10 135 140 141 1421381 137 171 139 Petroleum Agreements 172

16 147 Marrakech 146 Acreage

17 143 144 145 EXPLORATION ZONES COMPANY Km2 173 170 148 132 12 Loukos Offshore ONHYM - MPE __ 174 13 Casablanca Offshore I __ 133 14 Casablanca Offshore II ONHYM - MPE __ Ouarzazate 15 Safi Offshore __ 134 16 Ounara Est ONHYM - MPE __ LANTIC OCEAN 17 Ounara ouest __ 1 300,00 116 47 Tanger-Larache 1 AT 48 Tanger-Larache 2 ONHYM - REPSOL YPF - DANA 1 287,00 114 Agadiradir GAS NATURAL 981,00 49 Tanger-Larache 3 115 6 Tendrara "A" 1 594,70 1 598,30 7 Tendrara "B" 8 1 595,60 Tendrara "C" ONHYM - MPE 9 Tendrara "D" 1 046,50 11 Tendrara "E" 970,10 Ifni 50 Tendrara "F" 1 348,90 51 Tendrara "G" 1 510,00 1 428,00 52 Rabat-SalÙ Haute mer I 53 Rabat-SalÙ Haute mer II 1 440,00 1 999,00 54 Rabat-SalÙ Haute mer III 1 279,00 160 55 Rabat-SalÙ Haute mer IV ONHYM - PETRONAS 1 968,00 99I 100 56 Rabat-SalÙ Haute mer V 57 Rabat-SalÙ Haute mer VI 1 792,00 1 637,00 165 168 58 Rabat-SalÙ Haute mer VII 1 998,00 59 Rabat-SalÙ Haute mer VIII Petroleum Agreements __ 60 Moulay Bousselham ONHYM - HEYCO - STRATIC 104 163 167 Bouanane I 1 066,00 137 ONHYM - DANA-TETHYS- 78 Boujdour Offshore I ENERGYCORP. 1 615,00 151 Bouanane2 1 049,00 1 869,00 166 169 138 EASTERN 79 Boujdour Offshore II Tarfaya 152 161 162 164 Fès 153 105 ONHYM - CABRE 1 998,70 80 Boujdour Offshore III 1 758,00 139 Boudnib I 1 983,40 81 Boujdour Offshore IV 1 875,00 1926,00 154 140 Boudnib II 1 998,10 82 Boujdour Offshore V 83 Boujdour Offshore VI 1 925,00 141 Boudnib III 1 998,10 El Aioun 155 108 84 Boujdour Offshore VII 1 934,00 ALGERIA Boudnib IV 1 850,70 142 ONHYM - MND 85 Boujdour Offshore VIII 1 924,00 156 Boudnib V 143 1 989,70 86 Boujdour Offshore IX 1 929,00 78 Boudnib VI 79 157 144 1 891,20 87 Boujdour Offshore X 1 952,00 145 Boudnib VII 1 841,40 88 Boujdour Offshore XI 1 936,00 89 ONHYM - KOSMOS 1 933,00 81 80 146 Boudnib VIII 1 696,00 Boujdour Offshore XII 117 90 Boujdour Offshore XIII 1 946,00 147 Boudnib IX 1 575,00 82 91 Boujdour Offshore XIV 1 937,00 83 Guercif Est ONHYM - TRANSATLANTIC 1 894,50 118 149 92 Boujdour Offshore XV 1 939,00 Guercif Ouest STRATIC - LONGE 1 998,90 85 Boujdour119 150 93 Boujdour Offshore XVI 1 944,00 84 151 Tarfaya Onshore 1 2 000,00 94 Boujdour Offshore XVII 1 937,00 120 1 950,00 86 87 Tarfaya Onshore 2 1 966,00 95 Boujdour Offshore XVIII 121 152 1 947,00 arfaya Onshore 3 1 989,00 TION PERMITS 96 Boujdour Offshore XIX 122 TION PERMITS 153 T ONHYM - 88 89 97 Boujdour Offshore XX 1 957,00 Tarfaya Onshore 4 ISLAND - SAN LEON - 1 994,00 90 123 154 98 Boujdour Offshore XXI 1 948,00 arfaya Onshore 5 LONGREACH 2 000,00 91 124 155 T 99 Boujdour Offshore XXII 1 954,00 92 arfaya Onshore 6 1 995,00 125 156 T 100 Boujdour Offshore XXIII 1 953,00 arfaya Onshore 7 1 490,00 95 126 157 T 101 Rharb Centre 1 941,70 EXPLORA 1 939,70 94 127 EXPLORA 160 Bas Daraa 1 2 000,00 102 Rharb Sud ONHYM - CABRE 93 899,80 96 128 161 Bas Daraa 2 1 994,90 103 Tselfat ONHYM - TRANSATLANTIC 98 129 2 000,00 162 Bas Daraa 3 1 994,70 104 Ras Juby ONHYM - GENTING OIL 97 106 Sebou ONHYM - CIRCLE OIL Plc. 269,29 163 Bas Daraa 4 ONHYM - PETRO CANADA 1 999,90 109 Ouezzane -Tissa 1 1 998,40 164 Bas Daraa 5 - RWE 1 997,70 110 Ouezzane -Tissa 2 ONHYM - DIRECT - ANSHUTZ - 1999,10 ANIA 165 Bas Daraa 6 1 994,50 111 Ouezzane -Tissa 3 TRANSATLANTIC - LONGE 1 624,30 166 Bas Daraa 7 1 995,80 112 Ouezzane -Tissa 4 1 912,30 167 Bas Daraa 8 1 993,10 113 Ouezzane -Tissa 5 1 998,70 1 605,14 168 Bas Daraa 9 1 980,60 114 Agadir Maritime I ONHYM - GBP 1 654,13 169 Bas Daraa 10 2 000,00 115 Agadir Maritime II 117 Boujdour Onshore I 1 759,80 MAURIT 171 Essaouira Deep Offshore 1 1 752,20 118 Boujdour Onshore II ONHYM 1 921,00 172 Essaouira Deep Offshore 2 ONHYM - CANA MENS 1 736,70 119 Boujdour Onshore III 1 947,30 173 Essaouira Deep Offshore 3 1 677,80 120 Boujdour Onshore IV 1 911,10 174 Essaouira Deep Offshore 4 1 641,80 121 Boujdour Onshore V 1 967,20 122 Boujdour Onshore VI 1 962,90 123 Boujdour Onshore VII 1 907,40 124 Boujdour Onshore VIII 1 999,50 ONHYM 125 Boujdour Onshore IX 1 988,30 Reconnaissance Contracts 126 Boujdour Onshore X 1 938,90 127 Boujdour Onshore XI 1 965,30 224,00 10 Ait Riouch ONHYM - MPE 128 Boujdour Onshore XII 1 918,30 ONHYM - ENI 1 997,90 107 Doukkala - Abda 9 813,00 129 Boujdour Onshore XIII 130 Asilah 1 ONHYM - DIRECT - ANSHUTZ - 1 372,20 ONHYM - SAN LEON 108 Bassin de Zag 131 Asilah 2 TRANSATLANTIC - LONGE 1 382,00 ISLAND - OIL & GAS - LONGREACH 21 807,00 132 Haha 11 608,00 133 Haha 2 ONHYM - PEL 1 760,00 116 Ouest Souss Onshore __ ONHYM - GBP 134 Haha 3 1 551,00 28 117,50 135 Tadla ONHYM - HUNT 136 Missour Est ONHYM - MPE 7 937,80

CONTRACTS 24 545,60 148 Ouarzazate ONHYM - MND

RECONNAISSANCE 158 Missour Ouest 13 086,90 159 Haut Atlas ONHYM - HUNT 22 875,00 170 Esssaouira Shallow Offshore ONHYM - CANA MENS 4 921,50

Updated : 31 - 12 - 08