courtesy TransAtlantic

Island Oil & Gas has been handed seven exploration licenses in Morocco’s Tarfay basin by the Office National des Hydrocarbures et des Mines.

The first two-and-half years of the eight-year license will see Island reprocess and acquire seismic data while overseeing “geochemical modelling”, a statement said. A drill or drop decision will then be made.

Morocco boasts an “attractive fiscal regime relative to other North African oil and gas producing countries”, with state “participation” after production of 25 percent, a 10-percent royalty after 300,000 tonnes and a five-percent royalty on gas after 300 million cubic metres are produced.

A 35 percent corporate tax kicks in after “a 10-year holiday on production”.

Island is joined in the permit by operator IIEM with 40 percent, Longreach Oil & Gas Ventures with 30 percent and San Leon with 30 percent.

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