Morocco has officially converted the National Office of Hydrocarbons and Mines (ONHYM) into a joint-stock company, completing a year-long reform designed to give the state-owned energy agency greater financial and operational flexibility as it prepares to support major strategic projects, including the Africa-Atlantic Gas Pipeline (AAGP).

The royal decree formalising ONHYM's new legal status was published in the Official Gazette, according to Médias24. The company's initial share capital, the value of which has not been disclosed, is wholly owned by the Moroccan state.

The new corporate structure allows ONHYM to establish subsidiaries, raise capital through a wider range of financial instruments, including venture capital and structured borrowing, and expand its activities internationally for the first time.

The government also intends gradually to open ONHYM's capital to private investors while retaining majority voting rights. Energy Transition Minister Leila Benali said the move marked the start of a broader reform of Morocco's public sector and did not constitute a privatisation.

Established in 2003 through the merger of Morocco's hydrocarbons and mining agencies, ONHYM oversees oil, gas and mineral exploration, manages partnerships with international energy companies and plays a central role in implementing the country's upstream energy strategy. It has been instrumental in promoting offshore and onshore exploration while supporting Morocco's efforts to diversify its energy mix.

The restructuring is closely linked to the proposed AAGP, a 6,900-km project expected to transport Nigerian natural gas to Morocco via 13 West African countries, also known as the Nigeria–Morocco Gas Pipeline (NMGP).

Estimated to cost around $25bn, the pipeline is being jointly developed by ONHYM and NNPC Limited, Nigeria's state-owned energy company, through a dedicated project company. According to ONHYM, the pipeline would have a maximum capacity of 30bn cubic metres (bcm) of gas annually, with around half that earmarked for Morocco’s domestic market and potential exports to Europe.

According to Reuters, ONHYM Chief Executive Amina Benkhadra said the intergovernmental agreement and final investment decision for the project are expected this year. The pipeline will be developed in three phases to facilitate financing and construction.

The AAGP is intended to improve energy security across West Africa by supplying gas to participating countries while ultimately connecting to Europe's gas network through Morocco. The project is also expected to stimulate industrial development, expand electricity generation and support regional economic integration.

Morocco imports more than 90% of its energy needs and has accelerated efforts to diversify supplies following the closure of the Maghreb-Europe Gas Pipeline, which previously transported Algerian gas through Morocco to Spain. Rabat has since expanded LNG import plans, renewable energy investment and regional gas partnerships to strengthen energy security while reducing its dependence on imported fossil fuels.

Earlier this year, Bloomberg reported that ONHYM was preparing its first capital raising following its conversion into a joint-stock company. However, an ONHYM source told Médias24 that the fundraising would instead be undertaken by the dedicated pipeline project company. The size, structure and timing of the financing have yet to be announced.

The reform forms part of Morocco's broader programme to modernise state-owned enterprises and improve corporate governance. ONHYM is the first of around 50 public entities expected to adopt joint-stock company status, allowing them to diversify funding sources, strengthen governance and operate under commercial corporate structures while remaining under state control.

Alongside the Nigeria-Morocco pipeline, ONHYM has been stepping up hydrocarbon exploration with international partners through offshore licensing campaigns and appraisal programmes along Morocco's Atlantic margin. At the same time, the country is positioning itself as a future producer of green hydrogen and renewable energy exports to Europe, making ONHYM's expanded financial flexibility an important element of its long-term energy strategy.