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About Oil, Gas & Energy Law in Tétouan, Morocco

Tétouan sits within the Tanger-Tétouan-Al Hoceima region, a strategic northern hub that benefits from proximity to the Maghreb-Europe gas pipeline, the industrial ecosystem of Tangier, and important wind resources along the Rif coastline. Morocco’s energy policy is nationally driven, with regional implementation. The country pursues two tracks in parallel: encouraging upstream and midstream hydrocarbons to bolster supply security, and accelerating renewable energy and efficiency to reduce imports, stabilize prices, and meet climate commitments. In practice, that means oil and gas exploration and infrastructure are governed by the national hydrocarbons regime under the oversight of the National Office of Hydrocarbons and Mines, while electricity, renewables, and efficiency are regulated by a suite of modern energy laws and agencies. On the ground in Tétouan, project sponsors interact not only with national bodies, but also with the local municipality, the regional investment center, the urban agency, and the distribution concessionaire for grid connections. The region hosts landmark wind projects, ongoing grid upgrades, logistics assets that support energy supply chains, and a growing base of industrial offtakers seeking reliable and greener power.

Why You May Need a Lawyer

Energy projects combine technical complexity with layered regulatory and commercial risk. A lawyer can add value at the earliest stages by mapping permits, structuring land access, and identifying regulatory pathways that fit your business model. If you are exploring or producing hydrocarbons, you may need counsel to negotiate reconnaissance or exploration permits, production sharing or participation terms with ONHYM, cost recovery mechanics, local content obligations, health and safety compliance, and environmental approvals. If you are developing a renewable project, you may need advice on site control and title, grid connection and wheeling rights, offtake structures such as private power purchase agreements with eligible consumers, engineering procurement and construction contracting, financing and security packages, curtailment risk allocation, and compliance with environmental impact assessment requirements. Industrial and commercial consumers often need help with self-generation, rooftop solar, energy performance contracting, and tariff or interconnection negotiations with the distributor. Cross border energy flows, including gas imports using reverse flow on the Maghreb-Europe pipeline, require contract and regulatory review. When an issue arises such as a permitting refusal, construction delay, force majeure event, price adjustment dispute, or an alleged breach of environmental or safety rules, experienced counsel can manage negotiations, regulatory engagement, and if needed arbitration or court proceedings. Investors, lenders, and suppliers will also expect robust legal due diligence to verify land rights, permits, corporate authorities, and the enforceability of key contracts.

Local Laws Overview

The hydrocarbons sector is governed by Morocco’s hydrocarbons code and implementing regulations, administered primarily by the National Office of Hydrocarbons and Mines. Upstream rights are granted through reconnaissance and exploration permits that can be extended subject to work obligations, with exploitation concessions for commercial discoveries. The state, through ONHYM, typically holds a carried interest during exploration and may participate in development. Fiscal incentives have historically included corporate income tax holidays for hydrocarbon production for a defined period, customs and value added tax relief on exploration inputs, and negotiated royalty frameworks, subject to applicable decrees and contracts. Surface access, health and safety rules, and decommissioning obligations apply throughout the lifecycle.

The electricity and renewables framework enables private generation and sales to eligible consumers, as well as large national programs managed by public agencies. The electricity sector regulator oversees network access and tariffs for use of the transmission system. The Office National de l’Electricité et de l’Eau Potable operates the national grid and remains the single buyer for most utility scale projects, while private wheeling to eligible offtakers is available under the renewable energy law. In Tétouan, electricity distribution and metering for medium and low voltage customers are managed under a concession by the local distributor, which means grid connection studies, metering configurations, and service quality are coordinated locally while complying with national codes and standards.

Environmental law requires impact assessment and permitting for most energy facilities, including wind and solar parks, substations, pipelines, storage tanks, and industrial boilers. The environmental impact assessment process involves scoping, baseline studies, public consultation, and review by a regional or national committee. For coastal or near shore projects, the maritime public domain and coastal protection law impose additional siting, setback, and authorization constraints. Water extraction, discharge, and stormwater management are regulated under the water law. Waste management, hazardous materials, and decommissioning are governed by national rules with local implementation and oversight by the provincial authorities.

Land law is an important pillar for any project. Morocco has multiple land tenures including titled private land, collective lands, forest domain, and the maritime public domain. Each category follows a specific acquisition or occupancy path, and energy projects often rely on emphyteutic leases, rights of way, or temporary occupation authorizations. Expropriation for public utility can be available for strategically important infrastructure subject to strict procedure and compensation. In Tétouan, the Agence Urbaine de Tétouan and the commune examine building permits, zoning compliance, and construction oversight for energy facilities and associated buildings.

Procurement and public private partnership considerations arise when contracting with public entities such as ONEE, MASEN, or a municipality. Competitive tendering rules, qualification criteria, performance security, and dispute resolution provisions are typically set out in tender documents and contracts. For private projects, Moroccan contract law, the commercial code, and standard EPC and O&M structures apply, often alongside international standards and arbitration clauses. Morocco recognizes and enforces foreign arbitral awards under the New York Convention, and the national arbitration and mediation law provides a modern framework for domestic and international proceedings.

Occupational health and safety obligations flow from the labor code and specific sectoral regulations and are enforced by labor inspectors and other competent authorities. Developers must implement safety plans, training, and incident reporting throughout construction and operation. Insurance such as construction all risks, third party liability, professional liability, and environmental impairment coverage is customary and often required by lenders.

Investment incentives are available under the national investment charter and regional support schemes and can include tax, customs, and land incentives, particularly for priority sectors and regions. The Regional Investment Center of Tanger-Tétouan-Al Hoceima acts as a single window for many administrative procedures, provides guidance on incentives, and coordinates with sectoral ministries.

Frequently Asked Questions

What authorities regulate oil, gas, and electricity activities that affect Tétouan

Hydrocarbons activities are overseen by the National Office of Hydrocarbons and Mines, which grants permits and negotiates contracts, in coordination with the Ministry of Energy Transition and Sustainable Development. Electricity generation and networks are governed by the national regulator for electricity and the national utility for transmission and system operation. In Tétouan, the local electricity distributor manages medium and low voltage distribution, connections, and service. Environmental and building permits are reviewed by the local municipality, the Agence Urbaine de Tétouan, and the regional environment committee.

Can a private company build and operate a renewable energy plant to supply its own factory or a nearby client

Yes. Under the renewable energy law, private developers can build plants and sell electricity to eligible consumers, including self-consumption at an industrial site or supply to third parties via wheeling over the transmission or distribution network, subject to capacity thresholds, technical standards, and payment of use of system tariffs. The project still needs land rights, environmental approval, construction permits, and a grid connection agreement with ONEE or the local distributor.

How are oil and gas exploration rights obtained and what are the typical terms

Companies apply to ONHYM for reconnaissance or exploration permits that grant exclusive rights in a defined area for a specified term, with work program and reporting obligations. If a commercial discovery is made, an exploitation concession can be granted for a longer term. ONHYM typically has a carried interest during exploration and may participate in development. Fiscal terms are set by law and contract and may include royalties, corporate tax arrangements, and customs or VAT relief for exploration inputs. Terms depend on the basin, work commitments, and negotiations.

What environmental approvals are required for energy projects near Tétouan

Most energy projects require an environmental impact assessment and an environmental acceptability decision issued after review by the regional or national committee. The process involves baseline studies, public consultation, and mitigation plans. Additional authorizations may be needed for coastal zones, protected areas, water use and discharge, hazardous waste, and air emissions. Compliance monitoring continues through construction and operation, and authorities can impose corrective measures or penalties for non compliance.

How are grid connections and wheeling arranged in practice

The developer requests a connection study from ONEE for transmission level or from the local distributor for distribution level. The study assesses capacity, network reinforcements, protection schemes, metering, and timelines. If wheeling is envisaged, the developer negotiates a use of system agreement and pays wheeling charges set under regulatory rules. Connection works, ownership, and cost sharing are defined in the connection agreement and may require construction of dedicated lines or substations.

Are there local content or training obligations for energy projects

Tender documents and hydrocarbons agreements often include commitments for local employment, training, and use of local goods and services where available. Even where not mandatory, demonstrating socio economic benefits, community engagement, and supplier development can be important for permitting, social license, and financing. Project companies should plan and document these measures from early development.

What are common contract structures for private renewable projects

Developers typically use an engineering procurement and construction contract for turnkey delivery, an operation and maintenance agreement for long term performance, and a power purchase agreement with an eligible consumer. Financing is documented through loan agreements and security over shares, land rights, receivables, and project assets. Key commercial risks include delays, performance guarantees, curtailment, grid unavailability, force majeure, and change in law. Clear allocation of these risks in contracts and alignment with lender requirements are essential.

How are disputes resolved in the energy sector

Contracts commonly include escalation to senior negotiation, followed by mediation or arbitration. Morocco has a modern arbitration framework and is a party to the New York Convention, enabling recognition and enforcement of foreign arbitral awards. Regulatory decisions may be subject to administrative recourse. For small consumer matters, local courts may be competent. Selecting a clear seat of arbitration, language, and institution, and ensuring compatibility with Moroccan public policy, reduces enforcement risk.

What due diligence should be done before acquiring or financing an energy project

Legal due diligence should verify corporate authorities, share capital and any encumbrances, land title or occupancy rights and their terms, environmental approvals and conditions, construction and grid permits, interconnection capacity and milestones, offtake contracts and creditworthiness, insurance, compliance history and outstanding claims, tax status, and alignment with sector laws and regulations. Technical, environmental, and financial due diligence should run in parallel and feed into conditions precedent for closing.

Are there specific regional considerations in Tétouan for siting and permitting

Yes. The Rif coastline and mountainous terrain can influence wind resource, access roads, and environmental sensitivities such as bird migration and coastal setbacks. Urban planning instruments and zoning maps administered by the Agence Urbaine de Tétouan affect site eligibility and building heights. For projects near the Maghreb-Europe pipeline or other strategic infrastructure, additional safety distances and coordination with operators are required. Local hydrology, cultural heritage, and tourism corridors may also shape design and mitigation measures.

Additional Resources

Ministry of Energy Transition and Sustainable Development, which sets national energy policy and oversees hydrocarbons, electricity, and environmental matters. National Office of Hydrocarbons and Mines, which grants and manages hydrocarbons permits and participates in exploration and production. Office National de l’Electricité et de l’Eau Potable, which oversees the national grid, transmission, and system operation. Autorité Nationale de Régulation de l’Electricité, which regulates access to the grid and tariffs for use of the transmission system. Moroccan Agency for Sustainable Energy, which develops utility scale renewables and manages key national programs. Moroccan Agency for Energy Efficiency, which supports energy efficiency projects and standards. Regional Investment Center of Tanger-Tétouan-Al Hoceima, which provides a single window for administrative procedures and investment support. Agence Urbaine de Tétouan, which manages urban planning and building permits. Commune de Tétouan and Wilaya authorities, which issue local authorizations and coordinate public services. Professional chambers and industry associations in the region, which can connect you with suppliers and workforce.

Next Steps

Define your project or issue in concrete terms, including location, technology or resource, capacity, target offtakers, and timeline. Gather core documents such as corporate registrations, site maps and any land agreements, preliminary grid correspondence, environmental baseline studies, and draft commercial terms with partners or offtakers. Request an initial legal scoping consultation to map permits, approvals, and counterparties, and to identify critical path items such as environmental impact assessment timing, grid capacity, and land tenure. Align your technical and financial planning with the legal roadmap, including selection of contracting models, risk allocation, and insurance. Engage early with authorities and operators, including the Regional Investment Center, the Agence Urbaine de Tétouan, the local distributor, and where applicable ONHYM, to confirm procedures, technical standards, and fees. Structure contracts with clear milestones, change in law and force majeure provisions, dispute resolution, and compliance covenants that satisfy lenders and investors. Build stakeholder and community engagement into your schedule and budget, particularly for sites near sensitive habitats or populated areas. If you anticipate a dispute or have received a notice from an authority, consult counsel promptly to preserve rights, meet response deadlines, and explore negotiated solutions. Throughout, document compliance actions, communications, and approvals to streamline due diligence and future audits.

This guide provides general information only. Laws and procedures evolve, and local practices can vary. If you are planning an energy project or facing a regulatory or contractual issue in Tétouan, consult a qualified lawyer who can provide advice tailored to your situation.

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Disclaimer:
The information provided on this page is for general informational purposes only and does not constitute legal advice. While we strive to ensure the accuracy and relevance of the content, legal information may change over time, and interpretations of the law can vary. You should always consult with a qualified legal professional for advice specific to your situation. We disclaim all liability for actions taken or not taken based on the content of this page. If you believe any information is incorrect or outdated, please contact us, and we will review and update it where appropriate.