Announcement of World Bank Approves Fifty Million Dollars Loan for Petroleum Exploration Project in Morocco on April 17, 1980

''FOR IMMEDIATE RELEASE . . .World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 80/77 Apr i l l 7, l 980 WORLD BANK.APPROVES $50 MILLION LOAN FOR PETROLEUM.EXPLORATION PROJECT IN MOROCCO The World Bank today announced approval of a $50 million loan to the Bureau de Recherches et de Participations Minieres (8RPM) with the guarantee of the Kingdom of Morocco for a petroleum exploration project. The $90 million Bank-financed project will contribute to Morocco's efforts to accelerate the exploration and development of its petroleum potential. It wi 11 help the Bureau c~:-:-:plete the exploration of producing areas where marginal prospects still exist which may be developed economically and assess the petroleum potential of basins yet unexplored and develop leads which could attract foreign investments. The project will also provide technical assistance to the Bureau in • prospect evaluation, exploration management, accounting and evaluation of the results of exploration, as well as in the assessment of options for exploiting oil shale reserves~ The project ~;;!1 support ex1sr1ng the Bureau staff and equipment in exploring for oil and gas in up to five petroleum basins by a program involving about 36 party-months of seismic survey, and the drilling of about 17 exploratory wells. The project will accelerate Moroccan efforts to reduce dependency on imported petroleum. The World Bank loan is for a term of 10 years, including four years of grace, with interest at 8.25% per annum. The loan would be refinanced, in whole or in part, at the Bank's option, by any subsequent Bank loan for development er production of petroleum resources identified under the project. In the case that the Bank, the borrower, and the Government of Morocco agree by March 31, 1984 that the project has failed to identify petroleum resources whose exploitation is commercially feasible, the term of the loan would be extended to 17 years. • NOTE: Money figures are expressed in U.S. dollar equivalents • FORM NO. 1121 (5-76) T E C H N I CA L DAT A PROJECT: COUNTRY: TOTAL COST: Petroleum Exploration ~ingdom of Morocco $90 million • BANK FINANCING: $50 mill ion, for a term of 10 years, including four years of grace, with interest at 8.25% per annum. The loan would be refinanced, in whole or in part, at the Bank's option, by any subsequent Bank loan for development or production of petroleum resources identified under the project. In the case that the Bank, the Bureau de Recherches et de Participations Minieres (8RPM) and the Government of Morocco agree by March 31, 1984 that the project has failed to identify petroleum resources whose exploitation is commercially feasible, the term of the loan would be extended to 17 years. OTHER FINANCING: BRPM, $40 million IMPLEMENTING ORGANIZATION: Bureau de Recherches et de Participations Minieres (8RPM) 5 et 7 Charia Moulay Hassan Rabat, Morocco Telex: BUREPAR 31066M PROJECT DESCRIPTION: It will contribute to Morocco's efforts to accelerate the exploration and development of its petroleum potential. It will h~lp 8RPM (i) complete the exploration of producing areas, where marginal • prospects still exist which may be developed economically, and (ii) assess the petroleum potential of basins yet unexplored and develop 11 leads 11 which could attract foreign investments. The project will also provide technical assistance to BRPM in prospect evaluation, exploration management, accounting, evaluation of the results of exploration and the technical and economic analysis of any petroleum discoveries. ft will also provide consultant assistance to BRPM for the evaluation of options for exploiting oil shale reserves. The project will support existing BRPM staff and equipment to explore oil and gas in up to five petroieum basins by a program involving 36 party-months of seismic survey, 100 rig-months to drill about 17 exploratory wells and related operations including site preparation, access roads, water supply, and equipment transportation, plus supporting specialized services and specific studies. PROCUREMENT: International competitive bidding in accordance with Bank guidelines will be used for the procurement of main and spare parts for seismic and drilling equipment, materials and consumables. Small purchases of $300,000 or less may be procured on the basis of local procedures which are acceptable to the Bank, provided that their aggregate amount does not exceed $4 mill ion. Specialized services for well drilling and seismic survey will be procured under limited international tendering after the expiration of ongoing 8RPM contracts. CONSULTANTS: 425 man-months to help BRPM improve the methods used to assess drilling'prospects and for the design of exploration programs; improve drilling management procedures; develop appropriate project account. ing procedures; evaluata the results of exploration, and assess the various options for exploiting oil shale reserves. ESTIMATED COMPLETION DATE: 1983 0