Casablanca – US energy company Murphy Oil Corporation has placed Morocco among four priority areas in its international exploration portfolio, highlighting the growing role of the country’s Atlantic offshore acreage in the company’s plans for future resource development. The Gharb Deep Offshore area is being considered alongside the Gulf of America, Côte d’Ivoire and Vietnam, according to the company’s second-quarter 2026 presentation.

The decision comes only months after Murphy entered Morocco through a petroleum agreement with the National Office of Hydrocarbons and Mines (ONHYM). The agreement gives the US company access to a large offshore exploration area covering approximately 16,989.9 square kilometers across 10 permits along Morocco’s northwestern Atlantic coast.

Murphy holds a 75% interest in the exploration acreage, while ONHYM retains 25%. Despite the size of the area and its inclusion among the company’s priority exploration regions, the project remains at an early stage. Murphy has not committed to drilling during the first three-year contractual period and is currently concentrating on geological studies, seismic data analysis and the identification of potential drilling targets.

The petroleum agreement was signed on January 22, 2026, and received regulatory approval on April 3. The 10 exploration authorizations were subsequently issued through decisions covering the individual permits, with the combined acreage reaching nearly 17,000 square kilometers.

The scale of Murphy’s Moroccan position is significant within the company’s international portfolio. Murphy estimates the area at more than four million acres, which it compares with more than 700 blocks in the Gulf of America. The permits are spread across a broad offshore zone, with individual areas ranging from 1,181.6 square kilometers for Gharb Deep Offshore VII to 1,984.8 square kilometers for Permit V.

The company’s current strategy is based on evaluating the geological potential before committing capital to offshore wells. Murphy has begun reviewing existing geological information and reprocessing seismic data to improve its understanding of the subsurface structures.

Initial interpretation has identified a significant geological structure that has not previously been tested by drilling. Murphy has described a target featuring a four-way closure and indicated that an oil prospect is receiving particular attention. However, the identification of a geological structure does not establish the presence of commercially recoverable hydrocarbons. Further technical work will be required before the company can determine whether drilling is justified.

The distinction is important because offshore exploration involves substantial costs and technical risks. Companies generally use seismic surveys and geological modeling to narrow down potential prospects before deciding whether to drill an exploration well. A positive seismic interpretation can increase the attractiveness of a target, but only drilling can establish whether hydrocarbons are actually present and whether they can potentially be developed commercially.

Murphy’s current timetable suggests that further preparation and analysis could continue for roughly a year before any potential drilling program. A first well could potentially be considered from 2028, although this remains an indicative timeframe rather than a binding commitment.

Morocco’s emergence as one of Murphy’s four priority exploration regions also comes against the background of the country’s broader efforts to increase exploration for domestic energy resources. Morocco has historically relied heavily on imported energy, while its authorities have sought to attract international companies to explore both onshore and offshore areas.

The country’s Atlantic margin has attracted exploration interest from several international energy companies over the years, although previous exploration programs have produced mixed results. The latest Murphy agreement adds another major international participant to Morocco’s offshore exploration sector and expands the area currently being evaluated for possible hydrocarbons.

The potential economic implications depend heavily on the results of the exploration program. At the present stage, the direct contribution to production, government revenues or domestic energy supply remains limited because Murphy has not established a commercial discovery.

If future drilling confirms commercially viable oil or gas resources, the consequences could be more substantial. A successful development could generate investment in drilling, infrastructure, engineering, logistics and specialized energy services. It could also create demand for skilled workers and technical companies involved in offshore operations.

For Morocco, a commercially viable discovery could potentially provide an additional domestic source of energy and reduce part of the country’s dependence on imported hydrocarbons. The scale of any contribution would depend on the volume and quality of the resources discovered, the cost of developing them and the infrastructure required to bring production to market.

Murphy’s financial position gives it considerable capacity to continue funding exploration. During the second quarter of 2026, the company spent $119 million on exploration and an additional $17 million evaluating discoveries. Total capital expenditure during the quarter reached $476 million.

The company reported average production of 169,000 barrels of oil equivalent per day during the second quarter. Oil represented 50% of that production, natural gas liquids accounted for 7% and natural gas for 43%.

Murphy also generated $110 million in free cash flow during the second quarter, compared with $17.8 million in the same period of 2025. During the first six months of 2026, free cash flow reached $151.4 million, compared with negative free cash flow of $27.2 million during the first half of the previous year.

The company reported approximately $2.5 billion in liquidity at the end of the period, including $484 million in cash and about $2 billion available through its credit facility. Net debt stood at approximately $1.067 billion.

These figures provide context for Murphy’s decision to focus its exploration capital on a limited number of areas. By concentrating on Morocco, the Gulf of America, Côte d’Ivoire and Vietnam, the company is seeking to direct geological and financial resources toward projects where it believes further analysis could identify opportunities for future resource additions.

For Morocco, the immediate significance of the Murphy project is therefore its exploration potential rather than any confirmed increase in oil or gas production. The company’s 75% stake and the size of the Gharb Deep Offshore acreage give it a substantial role in determining whether the area advances toward drilling.

The next stage will depend on the results of seismic interpretation and geological assessment. Murphy will have to determine whether the identified structures are sufficiently attractive to justify the cost and technical risks of drilling. If the company proceeds, an exploration well could provide the first direct test of the most promising target.

Until then, the Gharb Deep Offshore project remains an exploration undertaking rather than a producing energy asset. Morocco’s inclusion among Murphy Oil’s four priority international exploration areas signals that the company considers the acreage strategically important, while the eventual economic value of the project will depend on evidence obtained through further technical work and, potentially, future drilling.