Morocco restructures ONHYM in bid to attract private, foreign capital

Morocco has officially transformed the National Office of Hydrocarbons and Mines (ONHYM) from a public institution into a state-owned joint-stock company, a move aimed at strengthening governance, expanding financing options and making the country’s energy and mining sectors more attractive to private and foreign investors.

The reform was enacted through Dahir No. 1.26.19 and Law No. 56.24, published in the Official Bulletin on June 15. It replaces the legal framework established under Law No. 33.01, which governed ONHYM as a public institution with legal personality and financial autonomy.

The newly created entity, ONHYM-SA, will initially remain wholly owned by the Moroccan state.

Under its new legal status, ONHYM-SA will operate under Morocco’s commercial company law and be governed by a board of directors and a chief executive officer, replacing its previous administrative structure. The government said the new governance model is intended to align the company with international corporate standards while granting it greater managerial flexibility.

Authorities said the reform seeks to improve governance, diversify financing sources and enhance ONHYM’s economic performance, positioning it to compete more effectively in international energy and mining markets.

The new legal framework also expands the company’s operational scope, allowing it to undertake a broader range of commercial and financial activities, establish subsidiaries, and acquire equity stakes in companies both in Morocco and abroad.

ONHYM-SA will also be authorized to hold and manage permits, licenses and rights related to hydrocarbons, natural hydrogen and mineral resources.

Although the state will retain full ownership at the outset and continue to hold majority voting rights, the legislation creates a legal framework that allows the company’s capital to be gradually opened to private investors, including foreign partners.

The reform does not affect existing contracts, licenses or ongoing operations. Instead, it is designed to strengthen ONHYM’s long-term strategic role and improve its ability to participate in major regional energy and mining projects while attracting new investment.